A jackpot awaits India in carbon credits: experts

A multi-billion dollar jackpot is awaiting the Indian industry through carbon credits, if they are able to reduce their carbon di-oxide and related emissions in an appropriate manner.

Carbon credits is gaining in importance in India as the 40-developed countries, except US and Australia, are in a race against time to reduce their hazardous industrial emissions. According to Kyoto Protocol, the 40 developed nations should reduce their hazardous industrial emissions by 5 per cent on their 1995 levels during the time period of 2008-2012.

Even as these countries continue to witness growth in their economies, they are grappling with the issue on how they will abide by the Kyoto Protocol.

"This is an opportunity for the developing countries such as India. According to the Kyoto Protocol, any developed country can sponsor an environmental friendly project, for example in India, and if the project manages to reduce carbon di-oxide or related emission, the sponsoring nation can buy carbon credits from India," said C Kumarswamy, manager (South Asia) Climate Change Service, DNV, Bangalore.

Participating at a seminar organised by FKCCI, he said: "Reduction of one tonne of carbon dioxide is equivalent to 1 carbon credit, and this one credit in the global market is valued at close to 8 Euros. If the industries here in India adopt alternative fuels such as biomass in place of diesel, for example, in running a boiler in an industry, they get to save CO2 emission. This can be traded in the global market for a cost."

Giving further details, Kumaraswamy said that there is a global requirement of 350-500 million tonnes of carbon credits and there are only 225 projects in India, which are moving towards taking advantage of this concept.

"There is immense potential for Indian industries to tap into this multi-billion dollar jackpot. We should take advantage of this to save our precious natural resources and make this world a better place to live."