"The carbon market size which was 40 billion euros in 2007 is likely to grow up to 60-70 billion euros in 2008", said Rajesh Srivastava, managing director, Rabo India Finance Ltd, speaking at an international conference on carbon credits today.
The revenue size of the global carbon credit market was about 5 billion euros in the year 2006 and ramped up to 40 billion euros last year.
Carbon credits or Certified Emission Reductions (CERs) are given through the Clean Development Mechanism (CDM) executive board - the highest international body under the Kyoto Protocol to register projects and issue credits - to industrialised countries investing in "clean" projects in developing countries.
The financing country uses these credits to offset its carbon emissions and meet its emission reduction target under the Kyoto Protocol. On the other hand, the recipient country gains from an increase in investment in its renewable projects.
India at present holds nearly 43 percent (28 million tonnes) of the certified carbon credits issued so far by the CDM executive board. The country is also actively participating in CDM projects.
Out of a total of 1,047 projects registered by the CDM Executive Board till 5th May 2008, about 32 percent are registered in India alone - highest among all other "green" conscious nations. This has directed investments in renewable energy and energy efficiency projects.
