Lanco Infra's wind project receives UN certification

United Nations Framework Convention on Climate Change has registered Lanco Infratech's 3MW wind power project at Chikkasiddavanahalli village in Karnataka's Chitradurga district as a clean development mechanism project under the Kyoto Protocol.

The project will help the company earn additional revenue by selling carbon credits generated by the units.

Lanco Infratech shares were at Rs 492.50 on National Stock Exchange, up 3.5 per cent from Monday. Through this project there will be a reduction of around 4,823 tonne carbon dioxide equivalent greenhouse gas annually for 10 years ending November 18, 2017.

Total number of Indian projects registered with the UN now is 291, the highest in the world. Of the total 850 projects that have been registered, 34.24 per cent are from India.

Developed countries are bound by the Kyoto Protocol to cut greenhouse gas emissions between 2008 and 2012 by a collective average of at least 5 per cent below their 1990 levels.

One way to cut emissions is buying certified emission reductions, or carbon credits, that are generated by clean development mechanism projects, that reduce greenhouse gas emissions.

A project becomes eligible to sell one credit if it reduces 1 tn of its greenhouse gas emission. By 2012, India's average annual greenhouse gas reductions are pegged at 27.60 million credits, or about 15.84 per cent of the world's total annual reduction average of 174.27 million.