The environment ministry is organising a ‘Carbon Bazaar’ here in April with an aim to tap growing global Clean Development Mechanism (CDM) market and facilitate investment in carbon offset projects.
The event, being held for the first time in the country, is expected to draw stakeholders from across the world, offering opportunity to local firms to develop green projects.
“This event to be held on April 28-29 will offer direct business to business meetings between buyers and sellers of the CDM projects generating 35,000 to 75,000 Certified Emission Reductions (CERs) per annum,” a senior environment official said.
Parallely a conference to discuss emerging issues and an exhibition for showcasing the state-of-art technologies will also be held during the event organised in collaboration with German Federal Ministry of Environment, Nature Conservation and Nuclear Safety (BMU) and GTZ Climate Change, India.
India’s CDM potential represents a significant component of the global CDM market.Till March this year, 398 out of total 1455 projects registered by the CDM executive board are from India, which is next only to China with 453 projects.
The National CDM Authority (NCDMA) in India has accorded host country approval to 1226 projects facilitating an investment of more than Rs 151,397 crores.
These projects are in the sectors of energy efficiency, fuel switching, industrial processes, municipal solid waste and renewable energy.
If all these projects get registered by the CDM Executive Board, they have the potential to generate 573 million CERs by the year 2012.
At a conservative price of US dollar 10 per CER, it corresponds to an overall inflow of approximately US dollar 5.73 billion in the country by the year 2012.
As per Kyoto protocol, industrialised nations are mandated to reduce their carbon emissions, investing in CDM projects carried out in the developing world, and buy CERs (Carbon Credits) generated from them is one of the flexible mechanisms.
Kyoto protocol is an international agreement linked to the United Nations Framework Convenstion on Climate Change to deal with threats from global warming caused by green house gases in the atmosphere.