The rate of rejections for clean development mechanism (CDM) projects in India has been highest in the world. “Close to 43 per cent failure is projected,” said Digvijay Chauhan, manager-emissions, MF Global India Pvt Ltd at a conference on carbon credit organized by Confederation of Indian Industry (CII).
He said that the period for registration of carbon credit has gone up from six months to about two years in the recent past. Before 2007, the rejection rate was 3 per cent, said Avadhesh Mittal, Manager of Gensol Consultants Pvt Ltd, Global Energy Solutions.
The number of projects rejected has gone high due to financial barriers, irrelevant references in project design document without authentic back up, lack of CDM consideration and delayed response from consultants, he added.
The companies are not able to properly establish additional activity for gaining carbon credits with many of them aiming to get CDMs for projects that were established way back in 2002-2003, according to an official of GTZ, Carbon Procurement Unit.
Another consultant said that the rates of CERs have also gone down globally with reduction in industrial output. Many companies in Europe are selling permits at lower prices to due to the global meltdown, he added.
Earlier the rates of primary CERs in March 2007 was 16 euros which climbed to about euros 28 in July 2008. However, currently the rates are at an all time low to 14 euros.
Gujarat government is meanwhile aiming to make green buildings mandatory for real estate developers in the state. Developers will have to ensure that ventilations of buildings or colonies are so designed that the passage of wind is in the right direction, thereby reducing usage of fans and air-conditions. Also, rain water harvesting will be mandatory. In return, the people residing in the colonies will get carbon credit,” said SK Nanda principal secretary of Forest and Environment Department, Government of Gujarat.
