Carbon Credit
EXECUTIVE SUMMARY
Carbon Credits are gaining momentum not only around the world but also in India. The Concept of Carbon Credits evolved as a step to mitigate the rising Global Warming on earth. The emission of greenhouse gases by industries and anthropogenic activities has caused irreparable damage to the atmosphere leading to rising global temperature, affecting human life and causing Global Warming. The Concept of Carbon Credits was therefore evolved by way of an agreement by different countries of the world when they met at the third Conference of Parties (COP 3) to the United Nations Framework Convention on Climate Change.
Carbon Credits serve the dual purpose of protection of nature and as a source of revenue generation for the developing and under developed countries. The developed countries who have ratified the Kyoto Protocol, which was an outcome of the Third Conference of Parties of the UNFCCC, have agreed to reduce their greenhouse gas emissions as per the individual norms set by the Kyoto Protocol. In case they fail to meet the emission targets they can buy the extra requirement by following the flexibility mechanism provided by Kyoto Protocol i.e. either purchasing Carbon Credits from the commodities market or by investing in Clean Development Mechanism projects.
The objective of this report is to analyze the potential opportunity for Indian Companies, as India being a developing country has no emission norms to be followed and can benefit in terms of technology, capital transfer and profits by way of selling Carbon Credits and at the same time contribute to the main cause for which this concept evolved i.e. to protect the environment.
The highlights of this report are the Strategies which the companies can use to start a Clean Development Mechanism project. The strategies are the basic steps to start a project and hence are of immense importance. The report covers strategies which are applicable to different sectors followed by a study of
Carbon Credits are gaining momentum not only around the world but also in India. The Concept of Carbon Credits evolved as a step to mitigate the rising Global Warming on earth. The emission of greenhouse gases by industries and anthropogenic activities has caused irreparable damage to the atmosphere leading to rising global temperature, affecting human life and causing Global Warming. The Concept of Carbon Credits was therefore evolved by way of an agreement by different countries of the world when they met at the third Conference of Parties (COP 3) to the United Nations Framework Convention on Climate Change.
Carbon Credits serve the dual purpose of protection of nature and as a source of revenue generation for the developing and under developed countries. The developed countries who have ratified the Kyoto Protocol, which was an outcome of the Third Conference of Parties of the UNFCCC, have agreed to reduce their greenhouse gas emissions as per the individual norms set by the Kyoto Protocol. In case they fail to meet the emission targets they can buy the extra requirement by following the flexibility mechanism provided by Kyoto Protocol i.e. either purchasing Carbon Credits from the commodities market or by investing in Clean Development Mechanism projects.
The objective of this report is to analyze the potential opportunity for Indian Companies, as India being a developing country has no emission norms to be followed and can benefit in terms of technology, capital transfer and profits by way of selling Carbon Credits and at the same time contribute to the main cause for which this concept evolved i.e. to protect the environment.
The highlights of this report are the Strategies which the companies can use to start a Clean Development Mechanism project. The strategies are the basic steps to start a project and hence are of immense importance. The report covers strategies which are applicable to different sectors followed by a study of
References: • Government of India, Integrated Energy Policy, Report of Expert Committee (New Delhi: Planning Commission), August, 2008. • Nordhaus, William D & Joseph Boyer, Warming the World: Economic Models of Global Warming, MIT Press (2000) Newspapers and Magazines: