EcoSec lines up $100 m for carbon credits

EcoSecurities Group, one of the largest originators of carbon credit projects, has raised $100 million to invest in Indian projects for reduction of carbon emissions, and set up a new office in Mumbai for the purpose. The company will soon come out with its initial public offer.

The company will assist local project developers in entering the carbon credit market and work with them throughout the completion of the projects. It will monitor and transact GHG (greenhouse gas) emission reductions created by a project.

Tata and Reliance already have their own carbo-credit cells. There won't be any hidden penalty imbibed in pricing the project. One carbon credit is awarded for every 1 tonne reduction in carbon-dioxide emission.

Ishani Chattopadhyay, director, EcoSecurities India, said, "Our rationale behind setting up office in Mumbai is that we believe the small and medium enterprises (SME) sector, which constitutes 40 per cent of the overall domestic industry, has remained largely unaware of the potential of CDM (clean development mechanism). We plan to tap the sector in Rajasthan, Gujarat and Maharashtra as we believe 50 per cent of CER (carbon emission reduction) could be generated from the grass-root level activities in these areas."

Renewable energy, bio-fuels and sugar are some segments that EcoSecurities is targeting.

The potential for commercialising carbon credits has received good support from the Indian government, which has already approved 227 projects for the purpose.

The carbon credit market is estimated to reach over $30 billion during 2008-2012. India has the potential of generating revenue of around $1.25 billion assuming an average trading price of $5 a CER.