Frontier India Current Affairs

Written on May 17, 2008 – 6:44 pm | by FICA |

Increasingly global economies are becoming dependant on renewable sources of energy like wind, hydroelectricity, bio gas, bio fuel and solar energy. While dwelling on the current position in the energy sector, Mr Surender Mehta, Senior Vice President, RRB Energy Ltd commented that In India though carbon trading happens on MCX and NCDEX, participation is not very encouraging because of hosts of factors ranging from absence of big financial players like banks and mutual funds; relative lack of awareness among corporate and stakeholders and unavailability of trained skilled manpower’. He was speaking at the Conference on Carbon Credits organised by Confederation of Indian Industry (CII-Northern Region) yesterday.

Delivering the theme address at the Conference, Mr Rajesh Srivastava, Managing Director, Rabo India Finance Ltd said “Climate change has become more and more evident, which is all the more reason for Kyoto to be implemented at a faster pace.” Throwing light on the carbon market size, he shared that “it was 40 billion Euros in 2007 which is likely to grow up to 60-70 billion Euros in 2008″. Expressing his concern for Kyoto coming to an end in 2012, he gave an insight on the various hinderances in continuing it further which included low participation from various countries, complex processes, long time periods in processing of applications, and inadequate consultation procedures to resolve questions faster”. In the coming time PSUs also need to focus in this direction and also the financial sector needs to be more supportive for the interested companies to join this protocol further, he added.

Mr Salil Singhal, Chairman CII Northern Region & Chairman Secure Meters Ltd, while addressing, shared concerns about the challenges which come in the way of leveraging this huge opportunity. The Indian Government has taken a stand in global fora that developmental issues and concerns should be integrated into climate change framework, if the issues are to be effectively addressed. GHG mitigation and adaptation strategies should be designed to allow developing countries to achieve rapid economic growth and meet millennium development goals (MDGs) and have sufficient resources to support adaptation efforts.

In the global response to climate change, India and other developing countries have to find solutions which can meet the MDGs, reduce poverty, and can lead to economic and industrial growth without sacrificing the long term objectives of energy security and climate change. India is emerging as the global hub for further energy efficiency in industry, buildings, residential and commercial sectors and is playing a key role in the identification, development and utilisation of new and renewable energy sources. Indian industry is actively participating in CDM projects. 282 projects registered by the CDM Executive Board have already resulted in over 28 million tones of certified CO2 emission reductions, and have directed further investments in renewable energy and energy efficiency projects.

Sharing his perspective on the upcoming trends in Carbon Trading as well as its contribution to the exchequer, Mr Amitabh Nangia, Chairman, CII UP State Council & Director, Tricolite Electricals Ltd, stated, “India has cornered nearly 43% of the carbon credits (CERS) issued so far by the CDM executive board, the highest international body under the Kyoto Protocol to register projects and issue credits. Under the Kyoto Protocol, governments and companies in the European Union can use these credits to offset their carbon emissions and meet part of their reduction targets. Carbon credits are generated mainly in the developing countries because of the lower project cost. The Clean Development Mechanism (CDM), enables developing countries to participate in joint greenhouse gas (GHG) mitigation projects. The CDM enables these countries to meet their reduction commitments in a flexible and cost-effective manner. It allows public or private sector entities to invest in GHG mitigation projects in developing countries. In return the investing parties receive credits or certified emission reductions (CERs) which they can use to meet their targets under the Kyoto Protocol. While investors profit from CDM projects by obtaining reductions at costs lower than in their own countries, the gains to the developing country host parties are in the form of finance, technology, and sustainable development benefits.”

The Conference included thought provoking presentations and discussions by persons of eminence and key companies engaged in the rural retail sector including Mr Mahendra Kumar, Chief Executive, Reliance Energy Trading Ltd; Mr Bishal Thapa, Managing Director, ICF International; Mr Jotdeep Singh, Director & Head, India & Regional Co-ordinator Asia, Renewable Energy & Carbon Credits, Rabobank International; Mr Ashutosh Pandey, Head - CDM Practice, Emergent Ventures; Mr Mark Runacres, Senior Visiting Fellow, TERI & Director, Sheffield Vermark; Mr Saurabh Kumar, Secretary, Bureau of Energy Efficiency, Government of India; Mr Charles Cormier, Senior Carbon Specialist - South Asia, The World Bank; Mr S C Dangayach, Director - Projects, Steel Authority of India; Dr V Shunmugam, Chief Economist, MCX; Dr Y P Abbi, Fellow, TERI; Mr Anik Ajmera, Head - Business Development, Asia Carbon Exchange; Ms Mahua Acharya, Head - Carbon Markets & Climate Change, Arcelor Mittal, London; Ms Karin Sittler, Vice President, KfW Carbon Fund, Germany; Mr Sri Sundar, Head - Product Strategy, TCS Financial Solutions and Mr Shirish Sinha, Head - Climate Change, WWF India.

The diverse technical sessions on the agenda comprising Carbon Trading in Asia, Pricing & Trading carbon credits including emerging carbon trading strategies, Role of and opportunities in the voluntary market, Mainstreaming CDM projects in India, Mechanics for expanding role of CDM market, Future of the Carbon Market, Assessment of Bali Talks and possible scenarios post 2012 powered by thoughts of an experienced pool of eminent speakers, make this Conference a distinct learning forum for over 300 delegates representing varied industry segments, aspiring to leverage the huge potential in Carbon Credits & Carbon Trading.