India Inc eyes a billion dollar revenue through CDM projects
By Sanjay Garg | Sat, 10/08/2005 - 06:14
New Delhi--India Inc can earn a revenue of over a billion dollars through the 100-odd Clean Development Mechanism (CDM) projects that have been approved by the government to sell carbon credits.
The National Clean Development Mechanism Authority under the Ministry of Environment and Forests has cleared 107 CDM projects so far.
These projects entail an investment of Rs 7,816 crore and have the potential to reduce 132 million tonnes of green house gases such as carbon dioxide, an environment ministry official said at an Assocham seminar.
Going by the rate of six dollars a tonne of carbon dioxide, these projects can earn about 800 million dollars.
The official said these projects would be referred to the CDM executive Board in the Netherlands for approval.
The global carbon market is to the tune of 450 million tonnes per annum, of which India can capture about a 100 million tonnes per year during 2008-12, the first timeline under the Kyoto Protocol to reduce carbon emissions, Central Electricity Authority Member (thermal) R K Jain, who was holding additional charge as CEA Chairman, said.
Jain said domestic companies can generate additional revenue of over a billion dollars. Carbon credits start from a price range of six dollars a tonne of carbon dioxide and can go up as per the demand in international market, he said.
Expressing concern over environmental degradation caused by power and transport sectors, Jain said CDM projects need to be encouraged to reduce emmission of green house gases.
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