CARBON CREDIT

UNIVERSITY OF MUMBAI
PROJECT ON

BACHELOR OF COMMERCE
(BANKING AND INSURANCE)
SEMESTER V
(2010-2010)
SUBMITED BY
Miss P!!"# R Y#$#%
PROJECT GUIDE
P&!' S(#)*(i+#,s(-i
Hi)$i Vi$.# P&#/(#& S#-i*is
R#-)i)&#"#) J(0)"(0)1#+# C!++232
G(#*,!4#& (52s*)6 M0-7#i 8 9000:;
1
CARBON CREDIT
BACHELOR OF COMMERCE
BANKING INSURANCE
SEMESTER V
(2010-2011)
SUBMITTED
I) P#&*i#+ F0+'i++-2)* !' *(2 &2<0i&2-2)*s
F!& *(2 A1#&$ !' D23&22 !' B#/(2+!&s !' C!--2&/2 8
B#),i)3 #)$ I)s0&#)/2
B.
Miss P!!"# R Y#$#%
R!++ N! =2
Hi)$i Vi$.# P#&/(#& S#-i*i>s
RAMNIRANJAN JHUNJHUN5ALA COLLEGE
2
CARBON CREDIT
G(#*,!4#& (52s*)6 M0-7#i 8 9000:;
CERTIFICATE
T(is *! /2&*i'. *(#* Miss P!!"#RY#$#% !' BC!- B#),i)3 #)$
I)s0&#)/2 S2-2s*2& V (2010-2011) (#s s0//2ss'0++. /!-4+2*2$ *(2
P&!"2/* !) ?CARBON CREDIT@ 0)$2& *(2 G0i$#)/2 !' P&!'
S(#)*(i+#,s-(i
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P&!"2/* G0i$2 A I)*2&)#+ EB#-i)2&

EB*2&)#+ EB#-i)2&
3
CARBON CREDIT
DECLARATION
I6 Miss P!!"#RY#$#% *(2 s*0$2)* !' BC!- B#),)i)3 #)$ I)s0&#)/2
S2-2s*2& V (2010-2011) (2&27. $2/+#&2 *(#* I (#%2 /!-4+2*2$ *(2
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Si3)#*0&2 !' S*0$2)*
Miss P!!"# R#-+#+ Y#$#%
R!++ N! =2

4
CARBON CREDIT
ACKNO5LEDGEMENT
A s*0$2)* #+1#.s /!++2/*s s!-2 7!0<02*s #)$ 7&i/,7#*s 1(i+2
/!++2/*i)3 i)'!&-#*i!) #7!0* *(2 4&!"2/* (2As(2 (#s 0)$2&*#,2) I' *(2&2
is # 7!0<02*6 I 1!0+$ +i,2 *! s(#&2 *(2- 1i*( *(!s2 1(! (#%2 4+#.2$ #
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S(#)*i+#,s(-i 1(! -#$2 -2 /!)'i$2)* *! /(!!s2 *(is *!4i/ C (2+42$ -2
*! 32* *(2 i)'!&-#*i!) #)$ #+s! #(2#$ 1i*( *(2 4&24#&#*i!) !' *(2
4&!"2/* I #- #+s! *(#),'0+ '!& *(2 i)si3(* *(#* I (#%2 3#i)2$ *(&!03(
*(#* I (#%2 3#i)2$ *(&!03( )0-2&!0s $is/0ssi!) 1i*( (2&
I #- 3&#*2'0+ *! *(2 P&i)/i4#+ D& Us(# M0,0)$#)
P&!' L#,s(-i C(#)$&#s(2,#& #)$ P&!' N#)#$i)i J#3#))#&#.#)
'#/0+*. -2-72&s !' *(2 B/!- (B#),i)3 C I)s0&#)/2) #+s! $2s2&%2
si)/2&2 *(#),s '!& 30i$i)3 #)$ (2+4i)3 -2 1i*( -#*2&i#+ !' *(2 4&!"2/*
I 1!0+$ #+s! +i,2 *! 3i%2 -. si)/2&2 3&#*i*0$2 *! -. 4#&2)*s 1(!
(#%2 s044!&*2$ -2 *(&!03(!0* -. 4&!"2/* L#s*+. -. '&i2)$s 1(! (#%2
(2+42$ -2 i) %#&i!0s s*#32s #&2 #+s! *! 72 *(#),

5
CARBON CREDIT
INDED
SRNO TOPICS
PAGE
NO
1 INTRODUCTION TO CARBON CREDIT 1-9
2 KYOTO PROTOCOL 8-16
3 HO5 IT 5ORKS 17-23
4 CARBON CREDIT 8 INDIAN SCENARIO 24-27
5 BANKS ROLE IN CARBON CREDIT 28-30
6 CHANLLENGES FACED IN CARBON CREDIT 31-36
7 CASE STUDY 37-40
6
CARBON CREDIT
7
CARBON CREDIT
CHAPTER 1
INTRODUCTION TO CARBON CREDIT
11 I)*&!$0/*i!)E-
Carbon dioxide !"e #o$! i#%or!an! &reen"o'$e &a$ %rod'(ed b) (o#b'$!ion
o* *'e+$ "a$ be(o#e a (a'$e o* &+oba+ %ani( a$ i!$ (on(en!ra!ion in !"e
Ear!",$ a!#o$%"ere "a$ been ri$in& a+ar#in&+)-
T"i$ de.i+ "o/e.er i$ no/ !'rnin& in!o a %rod'(! !"a! "e+%$ %eo%+e
(o'n!rie$ (on$'+!an!$ !rader$ (or%ora!ion$ and e.en *ar#er$ earn bi++ion$
o* r'%ee$- T"i$ /a$ an 'ni#a&inab+e !radin& o%%or!'ni!) no! #ore !"an a
de(ade a&o-
Carbon (redi!$ are a %ar! o* in!erna!iona+ e#i$$ion !radin& nor#$- T"e !o!a+
ann'a+ e#i$$ion$ are (a%%ed and !"e #ar0e! a++o(a!e$ a #one!ar) .a+'e !o
an) $"or!*a++ !"ro'&" !radin&- B'$ine$$e$ (an ex("an&e b') or $e++ (arbon
(redi!$ in in!erna!iona+ #ar0e!$ a! !"e %re.ai+in& #ar0e! %ri(e-
India and C"ina are +i0e+) !o e#er&e a$ !"e bi&&e$! $e++er$ and E'ro%e i$
&oin& !o be !"e bi&&e$! b')er$ o* (arbon (redi!$-
8
CARBON CREDIT
1a$! )ear &+oba+ (arbon (redi! !radin& /a$ e$!i#a!ed a! 25 bi++ion /i!"
India,$ (on!rib'!ion a! aro'nd 21 bi++ion- India i$ one o* !"e (o'n!rie$ !"a!
"a.e ,(redi!$, *or e#i!!in& +e$$ (arbon- India and C"ina "a.e $'r%+'$ (redi! !o
o**er !o (o'n!rie$ !"a! "a.e a de*i(i!-
India "a$ &enera!ed $o#e 30 #i++ion (arbon (redi!$ and "a$ ro'&"+) ano!"er
140 #i++ion !o %'$" in!o !"e /or+d #ar0e!- 3a$!e di$%o$a+ 'ni!$ %+an!a!ion
(o#%anie$ ("e#i(a+ %+an!$ and #'ni(i%a+ (or%ora!ion$ (an $e++ !"e (arbon
(redi!$ and #a0e #one)-
Carbon +i0e an) o!"er (o##odi!) "a$ be&'n !o be !raded on India,$ 4'+!i
Co##odi!) Ex("an&e $in(e +a$! !"e *or!ni&"! !"e 4C5 "a$ be(o#e *ir$!
ex("an&e in A$ia !o !rade (arbon (redi!$-
In $!e% /i!" !"e dra#a!i( ri$e in C0
2
e#i$$ion$ and o!"er %o++'!an!$ in re(en!
)ear$ a .arie!) o* ne/ *inan(ia+ #ar0e!$ "a.e e#er&ed o**erin& b'$ine$$e$
0e) in(en!i.e$ 6 a$ide *ro# !axe$ and o!"er %'ni!i.e #ea$'re$ 6 !o $+o/
do/n o.era++ e#i$$ion$ &ro/!" and idea++) &+oba+ /ar#in& i!$e+*-
A 0e) *ea!'re o* !"e$e #ar0e!$ i$ e#i$$ion$ !radin& or (a%-and-!rade
$("e#e$ /"i(" a++o/ (o#%anie$ !o b') or $e++ 7(redi!$8 !"a! (o++e(!i.e+)
bind a++ %ar!i(i%a!in& (o#%anie$ !o an o.era++ e#i$$ion$ +i#i!- 3"i+e
#ar0e!$ o%era!e *or $%e(i*i( %o++'!an!$ $'(" a$ &reen"o'$e &a$e$ and a(id
rain b) *ar !"e bi&&e$! e#i$$ion$ #ar0e! i$ *or (arbon- In 2007 !"e !rade
#ar0e! *or C0
2
(redi!$ "i! 260 bi++ion /or+d/ide 6 a+#o$! do'b+e$ !"e
9
CARBON CREDIT
a#o'n! *ro# 2006- 9i:e o* &+oba+ (arbon (redi! #ar0e!; A%%roxi#a!e+) 260
bi++on
12 5(#* is /#&7!) /&2$i*F
A$ na!ion$ "a.e %ro&re$$ed /e "a.e been e#i!!in& (arbon or &a$e$ /"i("
re$'+! in /ar#in& o* !"e &+obe- 9o#e de(ade$ a&o a deba!e $!ar!ed on "o/ !o
red'(e !"e e#i$$ion o* "ar#*'+ &a$e$ !"a! (on!rib'!e$ !o !"e &reen"o'$e
e**e(! !"a! (a'$e$ &+oba+ /ar#in&- 9o (o'n!rie$ (a#e !o&e!"er and $i&ned
an a&ree#en! na#ed !"e <)o!o =ro!o(o+-
De.e+o%ed (o'n!rie$ #o$!+) E'ro%ean "ad $aid !"a! !"e) /i++ brin& do/n
!"e +e.e+ in !"e %eriod *ro# 2008 !o 2012- In 2008 !"e$e de.e+o%ed
(o'n!rie$ "a.e de(ided on di**eren! nor#$ !o brin& do/n !"e +e.e+ o*
e#i$$ion *ixed *or !"eir (o#%anie$ and *a(!orie$-
A (o#%an) "a$ !/o /a)$ !o red'(e e#i$$ion$- One i! (an red'(e !"e >?>
@&reen"o'$e &a$e$A b) ado%!in& ne/ !e("no+o&) or i#%ro.in& '%on !"e
exi$!in& !e("no+o&) !o a!!ain !"e ne/ nor#$ *or e#i$$ion o* &a$e$- Or i! (an
!ie '% /i!" de.e+o%in& na!ion$ and "e+% !"e# $e! '% ne/ !e("no+o&) !"a! i$
10
CARBON CREDIT
e(o-*riend+) !"ereb) "e+%in& de.e+o%in& (o'n!r) or i!$ (o#%anie$ ,earn,
(redi!$-
India C"ina and $o#e o!"er A$ian (o'n!rie$ "a.e !"e ad.an!a&e be(a'$e
!"e) are de.e+o%in& (o'n!rie$- An) (o#%an) *a(!orie$ or *ar# o/ner in
India (an &e! +in0ed !o Bni!ed Na!ion$ Cra#e/or0 Con.en!ion on C+i#a!e
C"an&e @BNCCCCA and 0no/ !"e ,$!andard, +e.e+ o* (arbon e#i$$ion
a++o/ed *or i!$ o'!*i! or a(!i.i!)- T"e ex!en! !o /"i(" I a# e#i!!in& +e$$
(arbon @a$ %er $!andard *ixed b) BNCCCCA I &e! (redi!ed in a de.e+o%in&
(o'n!r)- T"i$ i$ (a++ed (arbon (redi!-
Carbon dioxide !"e #o$! i#%or!an! &reen"o'$e &a$ %rod'(ed b) (o#b'$!ion
o* *'e+$ "a$ be(o#e a (a'$e o* &+oba+ %ani( a$ i!$ (on(en!ra!ion in !"e
Ear!",$ a!#o$%"ere "a$ been ri$in& a+ar#in&+)-
T"i$ de.i+ "o/e.er i$ no/ !'rnin& in!o a %rod'(! !"a! "e+%$ %eo%+e
(o'n!rie$ (on$'+!an!$ !rader$ (or%ora!ion$ and e.en *ar#er$ earn bi++ion$
o* r'%ee$- T"i$ /a$ an 'ni#a&inab+e !radin& o%%or!'ni!) no! #ore !"an a
de(ade a&o-
Carbon (redi!$ are a %ar! o* in!erna!iona+ e#i$$ion !radin& nor#$- T"e)
in(en!i.e$ (o#%anie$ or (o'n!rie$ !"a! e#i! +e$$ (arbon- T"e !o!a+ ann'a+
e#i$$ion$ are (a%%ed and !"e #ar0e! a++o(a!e$ a #one!ar) .a+'e !o an)
$"or!*a++ !"ro'&" !radin&- B'$ine$$e$ (an ex("an&e b') or $e++ (arbon
(redi!$ in in!erna!iona+ #ar0e!$ a! !"e %re.ai+in& #ar0e! %ri(e-
11
CARBON CREDIT
1G T(2 A$%#)*#32s *(2 Dis#$%#)*#32s
THE ADVANTAGES
Co#%anie$ in di**eren! ind'$!rie$ *a(e dra#a!i(a++) di**eren! (o$!$ !o +o/er
!"eir e#i$$ion$- A #ar0e!-ba$ed a%%roa(" a++o/$ (o#%anie$ !o !a0e (arbon-
red'(in& #ea$'re$ !"a! e.er)one (an a**ord- 7T"e %ri.a!e $e(!or i$ be!!er a!
de.e+o%in& di.er$i*ied a%%roa("e$ !o #ana&e !"e (o$!$ and ri$0$ Do*
red'(in& e#i$$ion$E8 $a)$ Fe$$e Ca"ne$!o(0 $%o0e$#an a! 9/edi$" %o/er
(o#%an) Ga!!en*a++ /"i(" i$ a #e#ber o* a &+oba+ Co#ba! C+i#a!e C"an&e
(oa+i!ion-
Red'(in& e#i$$ion$ and +o/erin& ener&) (on$'#%!ion i$ '$'a++) &ood *or
!"e (ore b'$ine$$- Cor exa#%+e in 1997 Bri!i$" Ener&) Co#%an) B=
(o##i!!ed !o brin& i!$ e#i$$ion$ do/n !o 10 %er(en! be+o/ 1990 +e.e+$-
A*!er !a0in& $i#%+e $!e%$ +i0e !i&"!enin& .a+.e$ ("an&in& +i&"! b'+b$ and
i#%ro.in& o%era!ion$ e**i(ien() B= i#%+e#en!ed an in!erna+ (a%-and-!rade
$("e#e and #e! i!$ e#i$$ion$ &oa+ b) !"e end o* 2001 6 nine )ear$ a"ead
o* $("ed'+e- B$in& !"e (o#bined C0
2
red'(!ion $!ra!e&) B= re%or!ed $a.in&
abo'! 2650 #i++ion-
T"en !"ereH$ !"e +on&-!er# in.e$!#en! an&+e; B')in& in!o !"e (arbon #ar0e!
boo# no/ $'&&e$!$ $i&ni*i(an! di.idend$ +a!er on- Carbon (redi!$ are
12
CARBON CREDIT
re+a!i.e+) ("ea% no/ b'! !"eir .a+'e /i++ +i0e+) ri$e &i.in& (o#%anie$
ano!"er rea$on !o %ar!i(i%a!e-
T(2 Dis#$%#)*#32s
A$ /i!" an) *inan(ia+ #ar0e! e#i$$ion$ !rader$ are .'+nerab+e !o $i&ni*i(an!
ri$0 and .o+a!i+i!)- T"e EBH$ !radin& $("e#e @EB-ET9A *or in$!an(e i$$'ed
$o #an) %er#i!$ be!/een 2005 and 2007 !"a! i! *+ooded !"e #ar0e!- 9'%%+)
$oared and (arbon %ri(e$ bo!!o#ed o'! re#o.in& in(en!i.e$ *or (o#%anie$
!o !rade- En*or(e#en! o* !radin& r'+e$ (an be I'$! a$ 'n%redi(!ab+e !"o'&"
Ca"ne$!o(0 $a)$ !"e EB i$ /or0in& !o (orre(! !"e %rob+e#$-
Carbon o**$e!$ "a.e !"eir o/n dra/ba(0$ /"i(" re*+e(! a *a$!-&ro/in& and
'nre&'+a!ed #ar0e!- 9o#e o**$e! *ir#$ in !"e Bni!ed 9!a!e$ and abroad "a.e
been (a'&"! $e++in& o**$e!$ *or nor#a+ o%era!ion$ !"a! do no! a(!'a++) !a0e
an) addi!iona+ C0
2
o'! o* !"e a!#o$%"ere $'(" a$ %'#%in& C0
2
in!o oi+ /e++$
!o *or(e o'! !"e re#ainin& (r'de- In 2008 !"e C+i#a!e >ro'% !"e
In!erna!iona+ E#i$$ion$ Tradin& A$$o(ia!ion and !"e 3or+d E(ono#i(
Cor'# /i++ /or0 !o de.e+o% a Go+'n!ar) Carbon 9!andard !o .eri*) !"a!
o**$e!!in& %roIe(!$ are be)ond b'$ine$$-a$-'$'a+ and "a.e +a$!in&
en.iron#en!a+ .a+'e-
T"e +a(0 o* o**$e! re&'+a!ion$ "a$ a+$o #ade #ar0e!in& %rob+e#a!i(-
Re(en!+) (o#%anie$ "a.e !a0en !o de(+arin& !"e#$e+.e$ 7(arbon ne'!ra+-8
13
CARBON CREDIT
B'! 'n!i+ !"e Cedera+ Trade Co##i$$ion de!er#ine$ !"e &'ide+ine$ *or $'("
!er#$ i!H$ 'n(+ear /"i(" (o#%anie$ a(!'a++) #eri! !"e di$!in(!ion- A+read)
Gai+ Re$or!$ !"e or&ani:er$ o* !"e A(ade#) A/ard$ and o!"er
or&ani:a!ion$ "a.e !a0en "ea! *or !o'!in& !"eir in.e$!#en!$ in (arbon o**$e!
%roIe(!$ !"a! /ere no! en!ire+) en.iron#en!a++) $o'nd-
19 E''2/* !' G+!7#+ 5#&-i)3
9ea/a!er$ (o'+d ri$e a+#o$! a #e!er in !"i$ (en!'r) and /i++ (on!in'e !o
#o.e '%- 9o#e (oa$!a+ re&ion$ a+read) $ee $ea$ona+ *+oodin& and !"e
$i!'a!ion i$ ex%e(!ed !o /or$en a$ /a!er +e.e+$ ri$e- Cora+ ree*$ are 'nder
%re$$'re *ro# ("an&e$ in /a!er +e.e+ and !e#%era!'re- A$ #o$! (arbon &oe$
in!o $ea %+an0!on (o'+d $'**er and !"a! /o'+d a**e(! $%e(ie$ "i&"er '% !"e
*ood ("ain-
14
CARBON CREDIT

1= 5(#* is G&22)(!0s2 2''2/*F
T"e $'n "ea!$ '% !"e ear!" b) $endin& $o+ar ra)$ !o/ard$ '$- 9o#e o* !"e$e
ra)$ donH! &e! !"ro'&" o'r a!#o$%"ere- T"o$e !"a! do /ar# '% !"e ear!"-
3"en !"e ear!" /ar#$ '% i! radia!e$ i!$ o/n ra)$ o* "ea! J in*rared ra)$-
>reen"o'$e &a$e$ ab$orb !"o$e /"i(" donH! e$(a%e %a$! !"e a!#o$%"ere-
T"e$e &reen"o'$e &a$e$ /ar# !"e ear!" $o i! i$ a! !"e !e#%era!'re /e
ex%erien(e no/- 3i!"o'! !"i$ %ro(e$$ !"e ear!" /o'+d be $o#e 30o C (oo+er
and +i*e on o'r %+ane! /o'+d be .er) di**eren!- ?o/e.er /e are %rod'(in&
!oo #an) &reen"o'$e &a$e$ /"i(" #ean !"e) are ab$orbin& #ore "ea! and
/ar#in& !"e ear!" !oo #'(" J !"i$ i$ (a++ed &+oba+ /ar#in&- One o* !"e
#ain &reen"o'$e &a$e$ i$ (arbon dioxide /"i(" (an be (rea!ed *ro#
("o%%in& do/n and b'rnin& o* !ree$- T"e *'e+ '$ed in (ar$ and #a("iner)
15
CARBON CREDIT
a+$o (rea!e$ (arbon dioxide a$ do (oa+ and na!'ra+ &a$- T"ere*ore i* /e
red'(e !"e '$e o* *'e+ and red'(e de*ore$!a!ion !"e a#o'n! o* &reen"o'$e
&a$ aro'nd ear!" $"o'+d a+$o be red'(ed- 9(ien!i$!$ $a) i! i$ a+read) !oo +a!e
!o %re.en! &+oba+ /ar#in& and !"ere*ore (+i#a!e ("an&e b'! b) red'(in&
&reen"o'$e &a$e$ /e (o'+d $!i++ +i#i! !"e i#%a(!- E.en a ("an&e in
!e#%era!'re o* 'nder 1 o C i$ eno'&" !o (a'$e ("an&e$ in rain*a++ and $ea-
16
CARBON CREDIT
CHAPTER 2
KYOTO PROTOCOL
21 MEANING
7T"e <)o!o =ro!o(o+ i$ a +e&a++) bindin& a&ree#en! 'nder /"i("
ind'$!ria+i:ed na!ion$ /i++ red'(e !"eir (o++e(!i.e e#i$$ion$ o* &reen"o'$e
&a$e$ b) 5-2K (o#%ared !o !"e )ear 1990 @b'! no!e !"a! (o#%ared !o !"e
e#i$$ion +e.e+$ !"a! /o'+d be ex%e(!ed b) 2010 /i!"o'! !"e =ro!o(o+ !"i$
!ar&e! re%re$en!$ a 29K ('!A- T"e &oa+ i$ !o +o/er o.era++ e#i$$ion$ *ro# $ix
&reen"o'$e &a$e$ J (arbon dioxide #e!"ane ni!ro'$ oxide $'+*'r
"exa*+'oride ?CC$ and =CC$ J (a+('+a!ed a! an a.era&e o.er !"e *i.e-)ear
%eriod o* 2008-12- Na!iona+ !ar&e!$ ran&e *ro# 8K red'(!ion$ *or E'ro%ean
Bnion and $o#e o!"er$ !o 7K *or !"e B9 6K *or Fa%an 0K *or R'$$ia and
%er#i!!ed in(rea$e$ o* 8K *or A'$!ra+ia and 10K *or I(e+and-8 T"e %ro!o(o+
a+$o rea**ir#$ !"e %rin(i%+e !"a! de.e+o%ed (o'n!rie$ "a.e !o %a) and $'%%+)
!e("no+o&) !o o!"er (o'n!rie$ *or (+i#a!e re+a!ed $!'die$ and %roIe(!$- T"e
%ro!o(o+ %ro.ide$ !"ree #e("ani$#$ !o !"e de.e+o%ed na!ion$ !o #ee! !"e
e#i$$ion !ar&e!$-
17
CARBON CREDIT
1) J!i)* I-4+2-2)*#*i!) (JI)E T"e <)o!o =ro!o(o+ %ro.ide$ *or de.e+o%ed
(o'n!rie$ !o i#%+e#en! %roIe(!$ !"a! red'(e e#i$$ion$ or re#o.e (arbon
*ro# !"e a!#o$%"ere in o!"er de.e+o%ed (o'n!rie$ in +ie' o* E#i$$ion
Red'(!ion Bni!$ @ERB$A- T"e$e ERB$ (an be '$ed !o #ee! !"e e#i$$ion
red'(!ion !ar&e!$- A FI %roIe(! #i&"! in.o+.e *or exa#%+e re%+a(in& a (oa+-
*ired %o/er %+an! /i!" a #ore e**i(ien! (o#bined "ea! and %o/er %+an!- FI
%roIe(!$ #'$! "a.e a%%ro.a+ o* a++ !"e %ar!ie$ in.o+.ed and #'$! +ead !o
e#i$$ion$ red'(!ion$ or re#o.a+ !"a! are addi!iona+ !o an) !"a! /o'+d "a.e
o(('rred /i!"o'! !"e %roIe(!- =roIe(!$ *ro# !"e )ear 2000 !"a! #ee! !"e FI
reL'ire#en!$ #a) be +i$!ed a$ FI %roIe(!$- ?o/e.er ERB$ #a) on+) be
i$$'ed in re+a!ion !o %eriod$ *ro# 2008 on/ard$-
2) C+2#) D2%2+!4-2)* M2/(#)is- (CDM) P&!"2/*sE T"e CD4 %ro.ide$
*or de.e+o%ed (o'n!rie$ !o i#%+e#en! %roIe(! a(!i.i!ie$ !"a! red'(e e#i$$ion$
in de.e+o%in& (o'n!rie$ in re!'rn *or Cer!i*ied E#i$$ion Red'(!ion$ @CER$A-
T"e CER$ &enera!ed b) $'(" %roIe(! a(!i.i!ie$ (an be '$ed b) de.e+o%ed
(o'n!rie$ !o "e+% #ee! !"eir e#i$$ion !ar&e!$ 'nder !"e =ro!o(o+- T"e
%ro!o(o+ a+$o $!re$$e$ !"a! $'(" %roIe(! a(!i.i!ie$ are !o a$$i$! !"e de.e+o%in&
(o'n!r) "o$! %ar!ie$ in a("ie.in& $'$!ainab+e de.e+o%#en!- A CD4 %roIe(!
a(!i.i!) #i&"! in.o+.e *or exa#%+e a r'ra+ e+e(!ri*i(a!ion %roIe(! '$in& $o+ar
%ane+$ or !"e in$!a++a!ion o* #ore ener&) e**i(ien! boi+er$- T"e %ro!o(o+
18
CARBON CREDIT
re*rain$ de.e+o%ed (o'n!rie$ *ro# '$in& CER$ &enera!ed o'! o* n'(+ear
*a(i+i!ie$ !o #ee! !"e !ar&e!$-
G) E-issi!)s T&#$i)3E T"e <)o!o =ro!o(o+ %ro.ide$ !"a! de.e+o%ed
(o'n!rie$ (an a(L'ire 'ni!$ *ro# o!"er de.e+o%in& %ar!ie$ and '$e !"e#
!o/ard$ #ee!in& !"eir e#i$$ion$ !ar&e!- T"i$ enab+e$ de.e+o%ed (o'n!rie$ !o
#a0e '$e o* +o/ (o$! o%%or!'ni!ie$ !o red'(e e#i$$ion$- On+) de.e+o%ed
(o'n!rie$ in $%e(i*ied in Annex're I !o !"e <)o!o =ro!o(o+ /i!" e#i$$ion
+i#i!a!ion and red'(!ion (o##i!#en!$ in$(ribed in Annex B !o !"e =ro!o(o+
#a) %ar!i(i%a!e in $'(" !radin&- 9'(" (o'n!rie$ #'$! !"ere*ore be %re%ared
!o !ran$*er 'ni!$ /"en !"e) do no! reL'ire !"e# *or (o#%+ian(e /i!" !"eir
o/n e#i$$ion !ar&e!$-
22 5(2&2 $!2s I)$i# <0#+i'.F
19
CARBON CREDIT
India bein& a de.e+o%in& (o'n!r) i$ no! in(+'ded in !"e Annex're I o* !"e
%ro!o(o+- ?en(e India (anno! L'a+i*) *or FI and e#i$$ion !radin&
#e("ani$#$- I! L'a+i*ie$ !o be a "o$! (o'n!r) *or !"e CD4 %roIe(!$-
2G CER(C2&*i'i2$ E-issi!) R2$0/*i!)s) T&#$i)3
A !ran$a(!ion in CER !radin& in.o+.e$ b')in& o* >?> e#i$$ion$ (redi!$ b)
en!i!ie$ @(o#%anie$ >o.ern#en!$ e!(-A *ro# (o#%anie$ or >o.ern#en!$
in.o+.ed in %roIe(!$ re+a!ed !o (arbon e#i$$ion red'(!ion in de.e+o%in&
(o'n!rie$- T"e idea i$ !o #a0e de.e+o%ed (o'n!rie$ %a) *or !"eir /i+d /a)$
/i!" e#i$$ion$ /"i+e a! !"e $a#e !i#e re/ardin& (o'n!rie$ /i!" &ood
be"a.ior in !"i$ re&ard- Cor exa#%+e a (o#%an) in India (an %ro.e i! !"a! i!
"a$ %re.en!ed e#i$$ion o* x-!on$ o* (arbon i! (an $e++ !"i$ #'(" a#o'n! o*
%oin!$ or (arbon (redi!$ !o a (o#%an) in $a) !"e B9 /"i(" "a$ been
e#i!!in& (arbon- T"i$ a++o/$ ind'$!rie$ in de.e+o%ed (o'n!rie$ !o o**$e! !"eir
e#i$$ion$ o* (arbon dioxide b) in.e$!in& in re*ore$!a!ion and (+ean ener&)
%roIe(!$ in de.e+o%in& (o'n!rie$ $'(" a$ +ar&e-$(a+e !ree %+an!a!ion$ a$ a
20
CARBON CREDIT
+'(ra!i.e a+!erna!i.e !o red'(in& e#i$$ion$- =+an!in& 100000 "e(!are$ o*
ne/ *ore$! (an re#o.e 1#n !on o* (arbon %er )ear *ro# !"e a!#o$%"ere-
Monday, November 03,
2008
IIPM-INTERNATIONAL, AHEMDABAD
Carbon Cred!" # Em!!n$ %an"
15
CER T&#$i)3
15
29
B2)2'i*s +i,2+. *! 72 $2&i%2$ '&!- CDM P&!"2/*s
De.e+o%ed (o'n!rie$ /i++ be ab+e !o #ee! !"eir !ar&e!$ o* red'(in& e#i$$ion$
a! #'(" +o/er (o$!-
21
CARBON CREDIT
De.e+o%in& (o'n!rie$ /i++ be ab+e !o a((e$$ !"e +a!e$! !e("no+o&)- C'r!"er
!"e %ar!ie$ in.o+.ed in (arbon (redi! $a+e /o'+d be ab+e !o %'! in addi!iona+
in.e$!#en!$ in!o !"eir ro'!ine b'$ine$$ !"ro'&" !"e (arbon (redi! earnin&$-
O.era++ i! /i++ +ead !o red'(!ion o* >?> e#i$$ion$-
2= CDM A44+i/#7i+i*.
T"e ind'$!rie$ /"i(" (an L'a+i*) *or !"e CD4 %roIe(!$ are a$ *o++o/$;
R2)21#7+2 2)2&3.
3ind %o/er
9o+ar ener&)
Bio#a$$ %o/er
?)de+ %o/er
>eo!"er#a+
C!0)*&. B9 2M !on Carbon
Fa%an 400
B9A 200
India 25
22
CARBON CREDIT
T)de+ =o/er
2- F02+ s1i*/(i)3 '&!- '!ssi+ '02+ *! 3&22) '02+ +i,2 7i!-#ss6 &i/2
(0s,6 2*/
E)2&3. 2''i/i2)/. -2#s0&2s &2+#*2$ *!
Boi+er
='#%$
T'rbine$
In$!a++a!ion o* .ario'$ $%eed dri.e$
E**i(ien! (oo+in& $)$!e#$
Ba(0 %re$$'re !'rbine$ e!(
3 C!32)2&#*i!) i) i)$0s*&i2s (#%i)3 7!*( s*2#- #)$ 4!12&
&2<0i&2-2)*
In /a$!e #ana&e#en!
Ca%!'rin& o* +and*i++ #e!"ane e#i$$ion !o &enera!e %o/er
B!i+i:a!ion o* /a$!e and /a$!e /a!er e#i$$ion$ *or &enera!ion o* ener&) *or
23
CARBON CREDIT
(a%!i.e '$e o* %o/er &enera!ion
4 I) *&#)s4!&*
C'e+ $/i!(" *ro# &a$o+ine and die$e+ !o na!'ra+ &a$
4oda+ $"i*! *ro# air !o !rain road !o !rain a! #a(ro +e.e+
Re%+a(e#en! o* $"i%#en! o* (er!ain ra/ #a!eria+$ !"ro'&" road !o %i%e+ine$
2;
KEY PLAYERS
Ban0 o* A#eri(a i$ a +eader in (arbon-red'(!ion $!ra!e&ie$- T"e ban0
re(en!+) +a'n("ed a 220 bi++ion 10-)ear ini!ia!i.e !o *inan(e e#i$$ion-
red'(!ion %roIe(!$ in.e$! in &reen !e("no+o&) and *a(i+i!a!e (arbon-(redi!
!radin&-
B= i$ a#on& !"e #o$! /e++-0no/n (o#%anie$ !o i#%+e#en! an in!erna+ (a%-
and-!rade $)$!e#- T"e (o#%an) a$$i&ned i!$ 150 'ni!$ an e#i$$ion$ L'o!a
and a++o/ed !"e# !o b') and $e++ (arbon (redi!$ a#on& !"e#$e+.e$-
24
CARBON CREDIT
T"e E'ro%ean Bnion E#i$$ion Tradin& 9("e#e @EB ET9A i$ !"e #anda!or)
(a%-and-!rade %ro&ra# *or !"e EB-
T"e C"i(a&o C+i#a!e Ex("an&e @CC5A i$ a B-9- (arbon-!radin& $("e#e in
/"i(" (o#%anie$ #a0e a .o+'n!ar) b'! +e&a++) bindin& (o##i!#en! !o #ee!
e#i$$ion$ !ar&e!$-
CHAPTER G
H!1 I* 5!&,s E-
E#i$$ion$ +i#i!$ and !radin& r'+e$ .ar) (o'n!r) b) (o'n!r) $o ea("
e#i$$ion$-!radin& #ar0e! o%era!e$ di**eren!+)- Cor na!ion$ !"a! "a.e $i&ned
!"e <)o!o =ro!o(o+ /"i(" "o+d$ ea(" (o'n!r) !o i!$ o/n C0
2
+i#i!
&reen"o'$e &a$-e#i$$ion$ !radin& i$ #anda!or)- In !"e Bni!ed 9!a!e$ /"i("
did no! $i&n !"e en.iron#en!a+ a&ree#en! (or%ora!e %ar!i(i%a!ion i$
.o+'n!ar) *or e#i$$ion$ $("e#e$ $'(" a$ !"e C"i(a&o C+i#a!e Ex("an&e-
Ne! a *e/ &enera+ %rin(i%+e$ a%%+) !o ea(" !)%e o* #ar0e!-
Bnder a ba$i( (a%-and-!rade $("e#e i* a (o#%an)H$ (arbon e#i$$ion$ *a++
be+o/ a $e! a++o/an(e !"a! (o#%an) (an $e++ !"e di**eren(e 6 in !"e *or#
o* (redi!$ 6 !o o!"er (o#%anie$ !"a! ex(eed !"eir +i#i!$- Ano!"er *a$!-
&ro/in& .o+'n!ar) #ode+ i$ (arbon o**$e!$- In !"i$ &+oba+ #ar0e! a $e! o*
#idd+e#en (o#%anie$ (a++ed o**$e! *ir#$ e$!i#a!e a (o#%an)H$ e#i$$ion$
and !"en a(! a$ bro0er$ b) o**erin& o%%or!'ni!ie$ !o in.e$! in (arbon-
red'(in& %roIe(!$ aro'nd !"e /or+d- Bn+i0e (arbon !radin& o**$e!!in& i$nH!
25
CARBON CREDIT
)e! &o.ern#en! re&'+a!ed in #o$! (o'n!rie$O i!H$ '% !o b')er$ !o .eri*) a
%roIe(!H$ en.iron#en!a+ /or!"- In !"eor) *or e.er) !on o* C0
2
e#i!!ed a
(o#%an) (an b') (er!i*i(a!e$ a!!e$!in& !"a! !"e $a#e a#o'n! o* &reen"o'$e
&a$ /a$ re#o.ed *ro# !"e a!#o$%"ere !"ro'&" rene/ab+e ener&) %roIe(!$
$'(" a$ !ree %+an!in&-
5(. I* M#**2&s N!1
Ind'$!r) /a!("er$ $a) (arbon #ar0e!$ /i++ (on!in'e !o &ro/ a! a *a$! (+i% 6
e$%e(ia++) in !"e Bni!ed 9!a!e$ /"ere Cor!'ne 500 %o/er"o'$e$ $'(" a$
D'=on! Cord and IB4 are .o+'n!ari+) (a%%in& and !radin& !"eir e#i$$ion$-
E.en !"o'&" a na!iona+ (a% on (arbon e#i$$ion$ doe$nH! )e! exi$! in !"e
Bni!ed 9!a!e$ #o$! (on$ider i! ine.i!ab+e and +e&i$+a!or$ are a+read)
%'$"in& !"e i$$'e in Con&re$$-
I!H$ no! I'$! &o.ern#en!$ /"o are de#andin& e#i$$ion$ (o#%+ian(e 6
(on$'#er$ /an! i! !oo- T"e (o##i!#en! a (o#%an) #a0e$ !o ('rb i!$
%o++'!an! o'!%'! i$ an in(rea$in&+) %'b+i( a$%e(! o* $!ra!e&)- 4ore and #ore
e#%+o)ee$ are !a0in& !"e$e *a(!or$ in!o a((o'n! /"en de(idin& /"ere !o
/or0- A re(en! $!'d) *ro# 4on$!er TRA< *o'nd !"a! 80 %er(en! o* )o'n&
%ro*e$$iona+$ /an! !"eir /or0 !o i#%a(! !"e en.iron#en! in a %o$i!i.e /a)
and 92 %er(en! %re*er !o /or0 *or an en.iron#en!a++) *riend+) (o#%an)-
26
CARBON CREDIT
H!1 *! T#+, A7!0* I*
Ca%-and-!rade $("e#e; A #ar0e! a%%roa(" !o red'(in& &reen"o'$e &a$e$
!"a! /or0$ b) $e!!in& e#i$$ion$ !ar&e!$- >o.ern#en!$ or b'$ine$$e$ !"a!
red'(e !"eir (arbon o'!%'!$ in ex(e$$ o* !"e !ar&e! (an $e++ !"e di**eren(e !o
!"o$e /"o %rod'(e #ore !"an !"e +i#i!- T"i$ i$ !"e *a.ored $o+'!ion o* #an)
b'$ine$$ &ro'%$-
4AC$ @4ar&ina+ Aba!e#en! Co$!$A re*er !o !"e (o$! o* ('!!in& C0
2
e#i$$ion
/"i(" .arie$ *ro# (o'n!r) !o (o'n!r) and ind'$!r) !o ind'$!r)-
Cree-#ar0e! en.iron#en!a+i$#; T"i$ !"eor) "o+d$ !"a! !"e *ree #ar0e!
/"i(" o**er$ e(ono#i( in(en!i.e$ i$ !"e be$! !oo+ !o addre$$ &+oba+
/ar#in&- T"i$ .ie/ &oe$ a&ain$! !"e !radi!iona+ a%%roa(" !o
en.iron#en!a+i$# /"i(" +oo0$ !o &o.ern#en! re&'+a!ion !o %re.en!
en.iron#en!a+ de$!r'(!ion-
Trade in (arbon (redi!$ "a$ !"e %o!en!ia+ !o #a0e *ore$!r) #ore %ro*i!ab+e
and en"an(e !"e en.iron#en! a! !"e $a#e !i#e- I! "a$ !"ere*ore a!!ra(!ed
(on$iderab+e a!!en!ion o* !"e +i0e+) b')er$ o* (redi!$ %rod'(er$ @ie *ore$!
&ro/er$A and o!"er$- ?o/e.er i! i$ di**i('+! !o $!a) *'++) in*or#ed abo'!
27
CARBON CREDIT
(arbon (redi!$ be(a'$e o* !"e (o#%+exi!) and !"e %a(e o* de.e+o%#en!$ on
!"e $'bIe(!- T"i$ #ar0e! re%or! +oo0$ a! !"e ('rren! $i!'a!ion on (arbon (redi!
#ar0e!$ and !rade *ro# !"e .ie/%oin! o* $#a++ $(a+e &ro/er$- I! a+$o &i.e$
$!'#%a&e %ri(e$ re(en!+) re(ei.ed b) &ro/er$ in A'$!ra+ia- Core$!$ !"a!
L'a+i*) *or (arbon (redi! I! i$ /ide+) a((e%!ed !"a! i* !"e (on(en!ra!ion$ o*
&reen"o'$e &a$e$ @e& (arbon dioxide and #e!"aneA (on!in'e !o in(rea$e in
!"e a!#o$%"ere i! /i++ brin& abo'! #aIor ("an&e$ !o !"e &+oba+ (+i#a!e-
T"i$ in !'rn /i++ $erio'$+) !"rea!en "'#an /e+*are /or+d/ide- A &+oba+
%rob+e# o* !"i$ 0ind reL'ire$ a &+oba+ $o+'!ion- 9o 'nder !"e a'$%i(e$ o* !"e
Bni!ed Na!ion$ a++ de.e+o%ed (o'n!rie$ a&reed in 1997 in <)o!o Fa%an !o
red'(e or +i#i! e#i$$ion$ o* !"eir &reen"o'$e &a$e$- T"e a&ree#en! i$ (a++ed
!"e <)o!o =ro!o(o+- T"e %ro!o(o+ re(o&ni:e$ *ore$!$ a$ (arbon $in0$ and
%ro.ide$ *or (arbon !radin& a$ a #ean$ o* o**$e!!in& e#i$$ion$ o* &reen"o'$e
&a$e$ and #ee!in& !"e <)o!o !ar&e!$- Be*ore !"e %ro!o(o+ (an (o#e in !o
*or(e i! #'$! be ra!i*ied b) a! +ea$! 55 (o'n!rie$ in(+'din& !"e de.e+o%ed
(o'n!rie$ re%re$en!in& 55 %er (en! or #ore o* !"e 1990 &reen"o'$e &a$
e#i$$ion$ *ro# !"a! &ro'%- B'! a! !"e !i#e o* /ri!in& @in A%ri+ 2000A nei!"er
A'$!ra+ia nor an) o!"er de.e+o%ed (o'n!r) "a$ ra!i*ied i!- Nor "a$ !"e
A'$!ra+ian &o.ern#en! !a0en an) de(i$ion on (arbon (redi! !radin&-
?o/e.er *or !"e %'r%o$e o* !"i$ re%or! i! i$ a$$'#ed !"a! !"e %ro!o(o+ /i++
be ra!i*ied and (o#e in !o *or(e and !"a! a (arbon (redi! !rade /i++
(o##en(e- Bnder !"e %ro!o(o+ (arbon $eL'e$!ered in !ree$ @ie (arbon
28
CARBON CREDIT
(redi!A #'$! (o#e *ro# P<)o!o *ore$!$H /"i(" are ne/ *ore$!$; %+an!ed on
+and /"i(" "i$!ori(a++) "a$ no! been (o.ered b) *ore$! @i-e- a**ore$!a!ionAO
Q =+an!ed on +and /"i(" "i$!ori(a++) "a$ (on!ained *ore$! b'! /"i(" "a$ been
'$ed *or ano!"er %'r%o$e $in(e +a$! bein& (o.ered b) *ore$!$ @ie
re*ore$!a!ionAO and
Q Addi!iona+ !o !"o$e !"a! /o'+d o!"er/i$e "a.e been %+an!ed- T"e <)o!o
*ore$!$ #'$! ari$e *ro# a ("an&e in +and'$e and %+an!ed no! be*ore 1990-
>ro/er$ #'$! "a.e e.iden(e !o %ro.e !"eir *ore$!$ #ee! !"e$e L'a+i*i(a!ion$-
No!e a+$o !"a! (arbon $eL'e$!ered b) !"e *ore$!$ d'rin& 2008J2012 a+one i$
!radab+e- De(i$ion i$ %endin& abo'! !"e %eriod a*!er 2012- De(i$ion i$ a+$o
%endin& on !"e de*ini!ion o* !"e !er# P*ore$!H- T"e a#bi&'i!) on !"e #eanin&
o* P*ore$!H "ad +ed !o !"e $'&&e$!ion !"a! (er!ain *ore$! !)%e$ @e-&-
/indbrea0$A #a) no! L'a+i*) a$ <)o!o *ore$!$- I! $"o/$ !"a! #an) o* !"e
i$$'e$ (en!ra+ !o (arbon (redi! #ar0e!$ and !rade are )e! !o be (+ari*ied- T"e
(o$!$ a *ir$! $!e% in $e++in& !"e $eL'e$!ered (arbon i$ !o #ea$'re i!$ L'an!i!)
in !ree$- A ran&e o* $i#%+e !o (o#%+ex !e("niL'e$ i$ a.ai+ab+e *or !"e
%'r%o$e- In &enera+ !"e !e("niL'e$ are #ore re+iab+e *or %+an!a!ion$ o*
$%e(ie$ $'(" a$ radia!e %ine and (er!ain e'(a+)%!$ b'! +e$$ $o *or %+an!a!ion$
o* o!"er $%e(ie$ or o* #ixed a&e$ and #ixed $%e(ie$- O!"er !"in&$ re#ainin&
!"e $a#e #ea$'re#en!$ o* (arbon /i!" a "i&"er $!a!i$!i(a+ a(('ra() /i++
re$'+! in a "i&"er (o$! *or !"e &ro/er- T"e nex! $erie$ o* $!e%$ in $e++in& !"e
(arbon in.o+.e; a&&re&a!ion o* indi.id'a+ &ro/er$H (arbon in !o a $i:eab+e
29
CARBON CREDIT
%oo+O .eri*i(a!ion o* !"e %oo+O i$$'an(e o* (arbon (redi! (er!i*i(a!e$ b) an
inde%enden! a&en!O re&i$!ra!ion o* !"e (er!i*i(a!e$ and !"eir +od&#en! /i!" an
a'!"ori:ed #ar0e! (+earin& "o'$e @e-&- !"e 9)dne) C'!'re$ Ex("an&eA *or
$a+eO and ex("an&e o* !"e (er!i*i(a!e$ and !"e #onie$- Be$ide$ !"e (o$!$ o*
!"e a*ore-#en!ioned $!e%$ &ro/er$ #a) a+$o in('r $o#e o!"er (o$!$- An
exa#%+e i$ !"e (o$! o* ex!ra in$'ran(e a&ain$! !"e +o$$ o* !ree$ !"ro'&" *ire
/ind$!or# and !"e +i0e- T"e (o$!$ o* $er.i(e$ and !ran$a(!ion$ a$$o(ia!ed
/i!" $e++in& (arbon are $'bIe(! !o e(ono#ie$ o* $(a+e- ?en(e $#a++ $(a+e
&ro/er$ /i++ %a) a "i&"er (o$! %er 'ni! o* (arbon- =eo%+e de$i&nin& !"e
!radin& #e("ani$# are .er) (on$(io'$ o* !"e %rob+e# and are !r)in& "ard !o
*ind /a)$ and #ean$ !o 0ee% !"e (o$!$ +o/ *or &ro/er$- ?o/e.er &ro/er$
!"e#$e+.e$ (o'+d a+$o !a0e $!e%$ !o red'(e !"eir (o$!$ b) Ioinin& or *or#in&
&ro/er$H (oo%era!i.e$ or &ro'%$ !"a! o**er e(ono#ie$ o* $(a+e- >ro/er$
need !o be a/are o* one #ore #aIor P(o$!H- I* a &ro/er /"o "a$ $o+d (arbon
(redi!$ *ro# "i$M"er *ore$! b'! !"en &oe$ on !o "ar.e$! !"e *ore$! "eM$"e /i++
in('r (arbon debi!$- T"e L'an!i!) o* debi!$ /i++ be a! +ea$! eL'a+ !o !"e
L'an!i!) o* (arbon (redi!$ $o+d- In !"i$ $i!'a!ion !"e &ro/er /i++ be reL'ired
!o *'++) o**$e! !"e debi!$ b) b')in& (arbon (redi!$ in !"e #ar0e! %+a(eO or
"a.in& addi!iona+ <)o!o *ore$!$O or '$in& a #ix o* bo!"- 3"a! i$ !"e !o!a+ o*
a++ !"e (o$!$ a &ro/er i$ +i0e+) !o %a) *or %rod'(in& (er!i*ied (arbon (redi!$
$'i!ab+e *or !radeR I! i$ a .er) i#%or!an! L'e$!ion- 9o i! i$ e$%e(ia++)
di$a%%oin!in& !o $a) !"a! re+iab+e in*or#a!ion on !"e (o$!$ i$ 'na.ai+ab+e and
!"ere*ore !"e L'e$!ion i$ 'nan$/erab+e- I! /o'+d be #o$! "e+%*'+ !o &ro/er$
30
CARBON CREDIT
i* re+iab+e in*or#a!ion on !"e (o$!$ /ere readi+) a.ai+ab+e !o !"e#- Carbon
(redi! %ri(e$- A *e/ $!'die$ "a.e a!!e#%!ed !o e$!i#a!e !"e %ri(e$ o* (arbon
(redi! 'nder .ario'$ ")%o!"e!i(a+ $(enario$- T"eir e$!i#a!e$ o* !"e %ri(e
ran&e *ro# 210 !o 2700 %er !one$ o* (arbon- 9o#e indi(a!ion o* !"e #ar0e!
%ri(e$ /i++ "o/e.er be a.ai+ab+e /"en !"e 9)dne) C'!'re$ Ex("an&e $!ar!$
*or/ard !radin& in (arbon (redi!$ +a!er !"i$ )ear- @Cor/ard !radin& in.o+.e$
!rade in (on!ra(!$ !o b') or !o $e++ a (o##odi!) a! a $%e(i*ied *'!'re da!e and
a *ixed %ri(e- I! di**er$ *ro# !"e #'(" #ore (o##on $%o! !rade in /"i(" a
(o##odi!) i$ bo'&"! and $o+d /i!" i##edia!e e**e(!-A
S0--i)3 04
9o i$ i! /or!"/"i+e *or $#a++ $(a+e &ro/er$ !o 'nder!a0e %rod'(!ion o*
(arbon (redi!$ *or !radin&R De$%i!e !"e .a$! n'#ber o* $!'die$ on .ario'$
a$%e(!$ o* (arbon (redi!$ !"e e(ono#i($ o* (arbon (redi!$ *or $#a++ $(a+e
&ro/er$ "a$ no! )e! been adeL'a!e+) in.e$!i&a!ed- ?o/e.er a *e/ $!'die$
"a.e (o##en!ed on !"e i$$'e- T"e) in(+'de; <)o!o *ore$!$; =ro$%e(!i.e
%ro.ider$ o* (arbon-$eL'e$!ra!ion $er.i(e$R b) Nei+ B)ron and Andre/
Co+e#an 4ar(" 1999O >reen"o'$e (arbon !radin& and +and #ana&e#en!
b) ?a$$a++ S A$$o(ia!e$ No.e#ber 1999O and I$ (arbon *ar#in&
/or!"/"i+eR b) C"ri$ Boro'&" 4ar(" 2000- A &enera+ !"r'$! o* !"e$e
$!'die$ i$ !"a! 'nder !"e ('rren! r'+e$ #an) $#a++ $(a+e &ro/er$ #a) no!
*ind (arbon (redi! !rade $'**i(ien!+) re/ardin&- T"i$ i$ be(a'$e o* !"e
31
CARBON CREDIT
re+a!i.e+) "i&" !o!a+ (o$! %er 'ni! o* (arbon (redi! and !"e enor#o'$
!e("ni(a+ *inan(ia+ and in$!i!'!iona+ ri$0$ and 'n(er!ain!ie$- To (a%!'re !"e
%o!en!ia+ bene*i!$ o* (arbon (redi! !rade &ro/er$ $"o'+d #oni!or !"e *or/ard
!rade %ri(e$ o* (arbon (redi!$O $ee0 #ore in*or#a!ionO $!a) in*or#ed on !"e
("an&e$ in !"e <)o!o r'+e$ and !"e &o.ern#en! %o+i()O 0ee% re(ord$ o* !"eir
o/n *ore$!r) o%era!ion$O and !a0e o!"er a(!ion$ !o red'(e !"e (o$!$ ri$0$ and
'n(er!ain!ie$- C'!'re i$$'e$ o* !"i$ #ar0e! re%or! /i++ a+$o !r) !o in*or#
&ro/er$ on !"e +a!e$! de.e+o%#en!$ on (arbon (redi! !rade-
S*0-4#32 4&i/2s
ANB Core$!r) "a$ (o++e(!ed in*or#a!ion on a(!'a+ $!'#%a&e re(en!+)
re(ei.ed b) $#a++ $(a+e &ro/er$- A$ !"e (o++e(!ed in*or#a!ion /a$
in$'**i(ien! *or deri.in& a.era&e$ and !rend$ i! i$ %re$en!ed in (a$e $!'d)
*or#a! in !"e *o++o/in& !ab+e- B$er$ $"o'+d exer(i$e d'e (are in '$in& i! *or
a$$e$$in& $!'#%a&e *or a %ar!i('+ar $i!'a!ion-
32
CARBON CREDIT
CHAPTER 9
CARBON CREDIT 8 INDIAN SCENARIO
91 ANLYHING INDIAN SCENARIO

India bein& a de.e+o%in& (o'n!r) "a$ no e#i$$ion !ar&e!$ !o be *o++o/ed-
?o/e.er $"e (an en!er in!o CD4 %roIe(!$- A$ #en!ioned ear+ier ind'$!rie$
+i0e (e#en! $!ee+ %o/er !ex!i+e *er!i+i:er e!( e#i! &reen "o'$e$ &a$e$ a$ an
o'!(o#e o* b'rnin& *o$$i+ *'e+$- Co#%anie$ in.e$!in& in 3ind#i++ Bio-&a$
Bio-die$e+ and Co-&enera!ion are !"e one$ !"a! /i++ &enera!e Carbon Credi!$
*or $e++in& !o de.e+o%ed na!ion$- =o++'!in& ind'$!rie$ /"i(" are !r)in& !o
red'(e e#i$$ion$ and in !'rn earn (arbon (redi!$ and #a0e #one) in(+'de
$!ee+ %o/er &enera!ion (e#en! *er!i+i:er$ /a$!e di$%o$a+ 'ni!$ %+an!a!ion
(o#%anie$ $'&ar (o#%anie$ ("e#i(a+ %+an!$ and #'ni(i%a+ (or%ora!ion$-

33
CARBON CREDIT
92
BENEFITS FOR INDIA
B) $/i!("in& !o C+ean De.e+o%#en! 4e("ani$# =roIe(!$ India "a$ a +o! !o
&ain *ro# Carbon Credi!$;
aA I! /i++ &ain in !er#$ o* ad.an(ed !e("no+o&i(a+ i#%ro.e#en!$ and re+a!ed
*orei&n in.e$!#en!$-
bA I! /i++ (on!rib'!e !o !"e 'nder+)in& !"e#e o* &reen "o'$e &a$ red'(!ion b)
ado%!in& a+!erna!i.e $o'r(e$ o* ener&)
(A Indian (o#%anie$ (an #a0e %ro*i!$ b) $e++in& !"e CER$ !o !"e de.e+o%ed
(o'n!rie$ !o #ee! !"eir e#i$$ion !ar&e!$-
;
9G
34
CARBON CREDIT
TRADING OF CERS
Q A$ a /e+(o#e $(enario India no/ "a$ !/o Co##odi!) ex("an&e$ !radin&
in Carbon Credi!$- T"i$ #ean$ !"a! Indian Co#%anie$ (an no/ &e! a be!!er
!radin& %+a!*or# and %ri(e *or CER$ &enera!ed-
Q 4'+!i Co##odi!) Ex("an&e @4C5A IndiaH$ +ar&e$! (o##odi!) ex("an&e
"a$ +a'n("ed *'!'re$ !radin& in (arbon (redi!$- T"e ini!ia!i.e #a0e$ i! A$ia,$
*ir$!-e.er (o##odi!) ex("an&e and a#on& !"e $e+e(! *e/ a+on& /i!" !"e
C"i(a&o C+i#a!e Ex("an&e @CCEA and !"e E'ro%ean C+i#a!e Ex("an&e !o
o**er !rade$ in (arbon (redi!$- T"e Indian ex("an&e a+$o ex%e(!$ i!$ !ie-'%
/i!" CC5 /"i(" /i++ enab+e Indian *ir#$ !o &e! be!!er %ri(e$ *or !"eir (arbon
(redi!$ and be!!er in!e&ra!e !"e Indian #ar0e! /i!" !"e &+oba+ #ar0e!$ !o
*o$!er be$! %ra(!i(e$ in e#i$$ion$ !radin&-
Q On 11!" A%ri+ 2008 Na!iona+ Co##odi!) and Deri.a!i.e$ Ex("an&e
@NCDE5A a+$o "a$ $!ar!ed *'!'re$ (on!ra(! in Carbon Tradin& *or de+i.er) in
De(e#ber 2008-
Q 4C5 i$ !"e *'!'re$ ex("an&e- =eo%+e "ere are &e!!in& %ri(e $i&na+$ *or !"e
(arbon *or !"e de+i.er) in nex! *i.e )ear$- T"e ex("an&e i$ on+) *or Indian$
35
CARBON CREDIT
and Indian (o#%anie$- E.er) )ear in !"e #on!" o* De(e#ber !"e (on!ra(!
ex%ire$ and a! !"a! !i#e %eo%+e /"o "a.e bo'&"! or $o+d (arbon /i++ "a.e !o
&i.e or !a0e de+i.er)- T"e) (an *'+*i++ !"e dea+ %rior !o De(e#ber !oo b'!
#o$! %eo%+e /i++ /ai! 'n!i+ De(e#ber be(a'$e !"a! i$ !"e !i#e !o #ee! !"e
nor#$ in E'ro%e- I* !"e Indian b')er !"in0$ !"a! !"e ('rren! %ri(e i$ +o/ *or
"i# "e /i++ /ai! be*ore $e++in& "i$ (redi!$- T"e Indian &o.ern#en! "a$ no!
*ixed an) nor#$ nor "a$ i! #ade i! (o#%'+$or) !o red'(e (arbon e#i$$ion$
!o a (er!ain +e.e+- 9o %eo%+e /"o are (o#in& !o b') *ro# Indian$ /"o are
a(!'a++) *inan(ia+ in.e$!or$- T"e) are !"in0in& !"a! i* !"e E'ro%ean$ are
'nab+e !o #ee! !"eir !ar&e! o* red'(in& !"e e#i$$ion +e.e+$ b) 2009 2010 or
2012 !"en !"e de#and *or !"e (arbon /i++ in(rea$e and !"en !"e) #a) #a0e
#ore #one)- 9o in.e$!or$ are /i++in& !o b') no/ !o $e++ +a!er- T"ere i$ a
"'&e reL'ire#en! o* (arbon (redi!$ in E'ro%e be*ore 2012- On+) !"o$e
Indian (o#%anie$ !"a! #ee! !"e BNCCCC nor#$ and !a0e '% ne/
!e("no+o&ie$ /i++ be en!i!+ed !o $e++ (arbon (redi!$- T"ere are %ara#e!er$ $e!
and de!ai+ed a'di! i$ done be*ore )o' &e! !"e en!i!+e#en! !o $e++ !"e (redi!-
36
CARBON CREDIT
CHAPTER =
Fi)#)/i)3 s044!&* i) I)$i#
Q Carbon Credi!$ %roIe(!$ reL'ire$ "'&e (a%i!a+ in.e$!#en!- Rea+i:in& !"e
i#%or!an(e o* (arbon (redi!$ in India
Q T"e 3or+d Ban0 "a$ en!ered in!o an a&ree#en! /i!" In*ra$!r'(!'re
De.e+o%#en! Cinan(e Co#%an) @IDCCA /"erein IDCC /i++ "and+e (arbon
37
CARBON CREDIT
*inan(e o%era!ion$ in !"e (o'n!r) *or .ario'$ (arbon *inan(e *a(i+i!ie$-
Q T"e a&ree#en! ini!ia++) ear#ar0$ a 210-#i++ion aid in 3or+d Ban0-
#ana&ed (arbon *inan(e !o IDCC-*inan(ed %roIe(!$ !"a! #ee! a++ !"e reL'ired
e+i&ibi+i!) and d'e di+i&en(e $!andard$-
Q IDBI "a$ $e! '% a dedi(a!ed Carbon Credi! de$0 /"i(" %ro.ide$ a++ !"e
$er.i(e$ in !"e area o* C+ean De.e+o%#en! 4e("ani$#MCarbon Credi!
@CD4A-
Q In order !o a("ie.e !"i$ obIe(!i.e IDBI "a$ en!ered in!o *or#a+
arran&e#en!$ /i!" #'+!i-+a!era+ a&en(ie$ and b')er$ o* (arbon (redi!$ +i0e
ICC 3a$"in&!on <*3 >er#an) and 9'#i!o#o Cor%ora!ion Fa%an and
re%'!ed do#e$!i( !e("ni(a+ ex%er!$ +i0e 4ITCON-
Q ?DCC Ban0 "a$ $i&ned an a&ree#en! /i!" Can!or CO2E India =.! 1!d and
4ITCON Con$'+!an() 9er.i(e$ 1i#i!ed @4ITCONA *or %ro.idin& (arbon
(redi! $er.i(e$- A$ %ar! o* !"e a&ree#en! ?DCC Ban0 /i++ /or0 /i!" !"e
!/o (o#%anie$ on a/arene$$ b'i+din& iden!i*)in& and re&i$!erin& C+ean
De.e+o%#en! 4e("ani$# @CD4A and *a(i+i!a!in& !"e b') or $e++ o* (arbon
(redi!$ in !"e &+oba+ #ar0e!
38
CARBON CREDIT
CHAPTER ;
;1 H!1 $!2s i* 1!&, i) &2#+ +i'2F
A$$'#e !"a! Bri!i$" =e!ro+e'# i$ r'nnin& a %+an! in !"e Bni!ed <in&do#-
9a) !"a! i! i$ e#i!!in& #ore &a$e$ !"an !"e a((e%!ed nor#$ o* !"e BNCCCC-
I! (an !ie '% /i!" i!$ o/n $'b$idiar) in $a) India or C"ina 'nder !"e C+ean
De.e+o%#en! 4e("ani$#- I! (an b') !"e ,(arbon (redi!, b) #a0in& Indian or
C"ine$e %+an! #ore e(o-$a..) /i!" !"e "e+% o* !e("no+o&) !ran$*er- I! (an !ie
39
CARBON CREDIT
'% /i!" an) o!"er (o#%an) +i0e Indian Oi+ or an)bod) e+$e in !"e o%en
#ar0e!-
In De(e#ber 2008 an a'di! /i++ be done o* !"eir e**or!$ !o red'(e &a$e$ and
!"eir a(!'a+ +e.e+ o* e#i$$ion- C"ina and India are en$'rin& !"a! ne/
!e("no+o&ie$ *or ener&) $a.in&$ are ado%!ed $o !"a! !"e) be(o#e en!i!+ed *or
#ore (arbon (redi!$- T"e) are $e++in& !"eir (redi!$ !o !"eir (o'n!er%ar!$ in
E'ro%e- T"i$ i$ "o/ a #ar0e! *or (arbon (redi! i$ (rea!ed-
E.er) )ear E'ro%ean (o#%anie$ are reL'ired !o #ee! (er!ain nor#$
be&innin& 2008- B) 2012 !"e) /i++ a("ie.e !"e reL'ired $!andard o* (arbon
e#i$$ion- 9o in !"e (o#in& *i.e )ear$ !"ere /i++ be a +o! o* (arbon (redi!
dea+$-
;2 5(#* is C+2#) D2%2+!4-2)* M2/(#)is-F
Bnder !"e CD4 )o' (an ('! !"e dea+ *or (arbon (redi!- Bnder !"e BNCCCC
("ar!er an) (o#%an) *ro# !"e de.e+o%ed /or+d (an !ie '% /i!" a (o#%an)
in !"e de.e+o%in& (o'n!r) !"a! i$ a $i&na!or) !o !"e <)o!o =ro!o(o+- T"e$e
(o#%anie$ in de.e+o%in& (o'n!rie$ #'$! ado%! ne/er !e("no+o&ie$ e#i!!in&
+e$$er &a$e$ and $a.e ener&)-
40
CARBON CREDIT
On+) a %or!ion o* !"e !o!a+ earnin&$ o* (arbon (redi!$ o* !"e (o#%an) (an be
!ran$*erred !o !"e (o#%an) o* !"e de.e+o%ed (o'n!rie$ 'nder CD4- T"ere i$
a *ixed L'o!a on b')in& o* (redi! b) (o#%anie$ in E'ro%e
;G H!1 $!2s MCD *&#$2 /#&7!) /&2$i*sF
T"i$ en!ire %ro(e$$ /a$ no! 'nder$!ood /e++ b) #an)- T"o$e /"o 0ne/
abo'! !"e %o$$ibi+i!) o* earnin& %ro*i!$ ado%!ed ne/ !e("no+o&ie$ $a.ed
(redi!$ and $o+d i! !o i#%ro.e !"eir bo!!o# +ine-
4an) (o#%anie$ did no! a%%+) !o &e! (redi! e.en !"o'&" !"e) "ad ne/
!e("no+o&ie$- 9o#e (o#%anie$ '$ed #ana&e#en! (on$'+!an(ie$ !o #a0e
!"eir %+an &reener !o e#i! +e$$ >?>- T"e$e #ana&e#en! (on$'+!an(ie$ !"en
$(o'!ed *or b')er$ !o $e++ (arbon (redi!$- I! /a$ a bi+a!era+ dea+-
?o/e.er !"e %ri(e !o $e++ (arbon (redi!$ a! /a$ no! a.ai+ab+e on a %'b+i(
%+a!*or#- T"e %ri(e ran&e %eo%+e /ere &e!!in& '$ed !o /a$ abo'! E'ro 15 or
#a)be +e$$ %er !onne o* (arbon- Toda) one !onne o* (arbon (redi! *e!("e$
aro'nd E'ro 22- I! i$ !raded on !"e E'ro%ean C+i#a!e Ex("an&e- T"ere*ore
)o' e#i! one !onne +e$$ and )o' &e! E'ro 22- E#i! +e$$ and in(rea$eMadd !o
)o'r %ro*i!-
41
CARBON CREDIT
3e a! !"e 4C5 de(ided !o !rade (arbon (redi!$ be(a'$e /e are in !o *'!'re$
!radin&- 1e! %eo%+e I'd&e i* !"e) /an! !o "o+d on !o !"eir a(('#'+a!ed (arbon
(redi!$ or $e++ !"e# no/-
4C5 i$ !"e *'!'re$ ex("an&e- =eo%+e "ere are &e!!in& %ri(e $i&na+$ *or !"e
(arbon *or !"e de+i.er) in nex! *i.e )ear$- O'r ex("an&e i$ on+) *or Indian$
and Indian (o#%anie$- E.er) )ear in !"e #on!" o* De(e#ber !"e (on!ra(!
ex%ire$ and a! !"a! !i#e %eo%+e /"o "a.e bo'&"! or $o+d (arbon /i++ "a.e !o
&i.e or !a0e de+i.er)- T"e) (an *'+*i++ !"e dea+ %rior !o De(e#ber !oo b'!
#o$! %eo%+e /i++ /ai! 'n!i+ De(e#ber be(a'$e !"a! i$ !"e !i#e !o #ee! !"e
nor#$ in E'ro%e-
9a) i* !"e Indian b')er !"in0$ !"a! !"e ('rren! %ri(e i$ +o/ *or "i# "e /i++
/ai! be*ore $e++in& "i$ (redi!$- T"e Indian &o.ern#en! "a$ no! *ixed an)
nor#$ nor "a$ i! #ade i! (o#%'+$or) !o red'(e (arbon e#i$$ion$ !o a (er!ain
+e.e+- 9o %eo%+e /"o are (o#in& !o b') *ro# Indian$ are a(!'a++) *inan(ia+
in.e$!or$- T"e) are !"in0in& !"a! i* !"e E'ro%ean$ are 'nab+e !o #ee! !"eir
!ar&e! o* red'(in& !"e e#i$$ion +e.e+$ b) 2009 or 2010 or 2012 !"en !"e
de#and *or !"e (arbon /i++ in(rea$e and !"en !"e) #a) #a0e #ore #one)-
9o in.e$!or$ are /i++in& !o b') no/ !o $e++ +a!er- T"ere i$ a "'&e reL'ire#en!
o* (arbon (redi!$ in E'ro%e be*ore 2012- On+) !"o$e Indian (o#%anie$ !"a!
#ee! !"e BNCCCC nor#$ and !a0e '% ne/ !e("no+o&ie$ /i++ be en!i!+ed !o
$e++ (arbon (redi!$-
42
CARBON CREDIT
T"ere are %ara#e!er$ $e! and de!ai+ed a'di! i$ done be*ore )o' &e! !"e
en!i!+e#en! !o $e++ !"e (redi!- In India a+read) 300 !o 400 (o#%anie$ "a.e
(arbon (redi!$ a*!er #ee!in& BNCCCC nor#$- Ti++ 4C5 (a#e a+on& !"e$e
(o#%anie$ /ere no! &e!!in& be$!-$'i!ed %ri(e- 9o#e /ere &e!!in& E'ro 15
and $o#e /ere &e!!in& E'ro 18 !"ro'&" bi+a!era+ a&ree#en!$- 3"en !"e
(on!ra(! ex%ire$ in De(e#ber i! i$ ex%e(!ed !"a! %ri(e$ /i++ be *ir# '% !"en-
On 4C5 /e a+read) "a.e %o/er ener&) and #e!a+ (o#%anie$ /"o are
!radin&- T"e$e (o#%anie$ are "i&"-ener&) (on$'#in& (o#%anie$- T"e) need
be!!er !e("no+o&) !o e#i! +e$$ (arbon-
;2 Is *(is -#&,2* #+s! 3!!$ '!& *(2 s-#++ i)%2s*!&sF
T"e$e (arbon (redi!$ are /i!" !"e +ar&e #an'*a(!'rin& (o#%anie$ /"o are
ado%!in& BNCCCC nor#$- Re!ai+ in.e$!or$ (an (o#e in !"e #ar0e! and b')
!"e (on!ra(! i* !"e) !"in0 !"e #ar0e! o* (arbon i$ &oin& !o *ir# '%- 1i0e an)
o!"er a$$e! !"e) (an b') !"e$e !oo- I! i$ 0e%! in !"e *or# o* an e+e(!roni(
(er!i*i(a!e-
3e are 0ee%in& !"e re&i$!r) and !"e o/ner$"i% /i++ !ra.e+ *ro# !"e ori&ina+
o/ner !o !"e nex! b')er- In !"e $"or!-!er# +ar&e in.e$!or$ are +i0e+) !o (o#e
and +a!er /e ex%e(! ban0$ !o &e! in!o !"e #ar0e! !oo- T"i$ b'$ine$$ i$ a
*'n(!ion o* #one) and $o#eone /i++ "a.e !o "o+d on !o !"e$e bi&
!ran$a(!ion$ !o $e++ a! !"e a%%ro%ria!e !i#e-
43
CARBON CREDIT
I$n,! i! bi! d'bio'$ !o a++o/ %o++'!er$ in E'ro%e !o b') (arbon (redi! and &e!
a/a) /i!" i!R
I! i$ in(orre(! !o $a) !"a! be(a'$e 'nder BNCCCC !"e %o++'!er$ (anno! b')
100 %er (en! o* !"e (arbon (redi!$ !"e) are reL'ired !o red'(e- 9a) o'! o*
100 %er (en! !"e) "a.e !o ind'(e 75 %er (en! +o(a++) b) .ario'$ #ean$ in
!"eir o/n (o'n!r)- T"e) (an b') on+) 25 %er (en! o* (arbon (redi!$ *ro#
de.e+o%in& (o'n!rie$
;G T2++ 0s 1(#*Is *(2 '+i4 si$2 !' .!0& 70si)2ssF
1i0e in !"e (a$e o* an) o!"er a$$e! i!$ %ri(e i$ de!er#ined b) a *'n(!ion o*
de#and and $'%%+)- No/ nor#$ are 0no/n and on !"a! ba$i$ E'ro%ean
(o#%anie$ /i++ #ee! !"e !ar&e! be!/een De(e#ber 2008 and 2012- =eo%+e
are /onderin& "o/ #'(" (redi! /i++ be a.ai+ab+e in #ar0e! a! !"a! !i#e- To
/"a! ex!en! /o'+d nor#$ be #e! b) E'ro%ean (o#%anie$- - -
A$ De(e#ber &e!$ (+o$er i! i$ %o$$ib+e !"a! $o#e &o.ern#en! #i&"! !in0er
/i!" !"e$e nor#$ a +i!!+e i* !"e !ar&e!$ (o'+d no! be #e!- I* !"e$e nor#$ are
("an&ed %ri(e$ (an &o !"ro'&" a (orre(!ion- B'! a$ o* no/ !"ere i$ a .er)
!ran$%aren! #e("ani$# in /"i(" !"e nor#$ *or !"e nex! *i.e )ear$ "a.e been
*ixed-
44
CARBON CREDIT
>o.ern#en!$ "a.e be(o#e $i&na!orie$ !o !"e <)o!o =ro!o(o+ and !"e) "a.e
$e! !"e nor#$ !o red'(e !"e +e.e+ o* (arbon e#i$$ion- A+read) (o#%anie$ are
on /a) !o #ee!in& !"eir !ar&e!-
O!"er !"an !"i$ i!,$ a L'e$!ion o* "a.in& (orre(! in*or#a!ion- ?o/ #'(" /i++
be !"e de#and *or (arbon (redi! $o#e )ear$ *ro# no/R ?o/ #'(" /i++ !"e
$'%%+) beR I! i$ a $a*e #ar0e! be(a'$e i! i$ a #a!!er o* "a.in& #ore
in*or#a!ion on !"e ex!en! o* de#and and $'%%+) o* (arbon (redi! #ar0e!-
45
CARBON CREDIT
CHAPTER J
CASE STUDY
J 1
IDBI E-
IDBI i$ one o* !"e %re#ier ban0$ en&a&ed in *'ndin& #edi'# and +ar&e-
$(a+e %roIe(!$ *or #ore !"an 40 )ear$ in in*ra$!r'(!'re and non-
in*ra$!r'(!'re $e(!or in India *or %ro#o!in& *a$! !ra(0 ind'$!ria+
de.e+o%#en!- IDBI "a$ a$$i$!ed #an) (o#%anie$ in India and "a.e $!ron&
re+a!ion$"i%$ /i!" !"e (o#%anie$ in Tex!i+e$ 9'&ar =o/erMEner&)
C"e#i(a+$ Cer!i+i:er$ ="ar#a(e'!i(a+$ 9!ee+ =a%er Ce#en! and o!"er
$e(!or$- Be$ide$ o**erin& .ario'$ ban0in& $er.i(e$ IDBI "a$ a+$o $e! '% a
dedi(a!ed Carbon Credi! de$0 /"i(" %ro.ide$ a++ !"e $er.i(e$ in !"e area o*
C+ean De.e+o%#en! 4e("ani$#MCarbon Credi! @CD4A- In order !o a("ie.e
!"i$ obIe(!i.e IDBI "a$ en!ered in!o *or#a+ arran&e#en!$ /i!" #'+!i-+a!era+
a&en(ie$ and b')er$ o* (arbon (redi!$ +i0e >er#an) and O'r %ri#ar)
obIe(!i.e i$ !o %ro!e(! +on&-!er# in!ere$!$ o* o'r (+ien!$ and $'&&e$! .ario'$
ri$0 #i!i&a!ion #ea$'re$- B) (o#binin& !"e ex%erien(e and ex%er!i$e o*
46
CARBON CREDIT
!"e$e a&en(ie$ and in-"o'$e $!ren&!" o* IDBI are in a %o$i!ion !o o**er a
(o#%+e!e ran&e o* CD4 re+a!ed $er.i(e$ !ai+or-#ade !o $'i! !"e need$ o* !"e
(+ien!$-
7-2
DELHI METRO RAIL CORPORATION (DMRCA;
A #'$! #en!ion %roIe(! i$ T"e De+"i 4e!ro Rai+ Cor%ora!ion @D4RCA; I!
"a$ be(o#e !"e *ir$! rai+ %roIe(! in !"e /or+d !o earn (arbon (redi!$ be(a'$e
o* '$in& re&enera!i.e bra0in& $)$!e# in i!$ ro++in& $!o(0- D4RC "a$ earned
!"e (arbon (redi!$ b) '$in& re&enera!i.e bra0in& $)$!e# in i!$ !rain$ !"a!
red'(e$ 30K e+e(!ri(i!) (on$'#%!ion- 3"ene.er a !rain a%%+ie$ re&enera!i.e
bra0in& $)$!e# !"e re+ea$ed 0ine!i( ener&) $!ar!$ a #a("ine 0no/n a$
(on.er!er-in.er!er !"a! a(!$ a$ an e+e(!ri(i!) &enera!or /"i(" $'%%+ie$
e+e(!ri(a+ ener&) ba(0 !o !"e O.er ?ead E+e(!ri(i!) @O?EA +ine$- T"i$
re&enera!ed e+e(!ri(a+ ener&) !"a! i$ $'%%+ied ba(0 !o !"e O?E !"a! i$ '$ed
b) o!"er a((e+era!in& !rain$ in !"e $a#e $er.i(e +ine- D4RC (an no/ (+ai#
400000 CER$ *or a 10-)ear (redi!in& %eriod be&innin& De(e#ber 2007
/"en !"e %roIe(! /a$ re&i$!ered b) !"e BNCCCC- T"i$ !ran$+a!e$ !o R$ 1-2
(rore %er )ear *or 10 )ear$- India "a$ !"e "i&"e$! n'#ber o* CD4 %roIe(!$
re&i$!ered and $'%%+ie$ !"e $e(ond "i&"e$! n'#ber o* Cer!i*ied E#i$$ion
Red'(!ion 'ni!$- ?en(e India i$ a+read) a $!ron& $'%%+ier o* Carbon Credi!$
and (an i#%ro.e on i!- @Re*er Annex're No- 3 S 4 *or %roIe(!$ re&i$!ered
and ex%e(!ed a.era&e ann'a+ CER$ &enera!e re$%e(!i.e+)A
47
CARBON CREDIT
CONCLUSIONE-
>+oba++) !"ere are n'#ber o* en.iron#en!a+ !radin& #ar0e!$ a$ "a.e been
ex%+ained abo.e /"i(" %ro.ide *or ba+an(e in %eriod o* en.iron#en! and
e**e(! (or%ora!e (o#%e!i!i.ene$$ and %ro*i!abi+i!) in !er#$ o* $!andard$ and
*ina+ *ini$"ed %rod'(!$- T"ere (an be in(rea$ed re.en'e and %ro*i!abi+i!) and
a+$o ri$0-!a0in& #ea$'re$ ado%!ed b) de.e+o%ed na!ion$ and !"i$ in !'rn $"a++
*'e+ !"e &ro/!" o* de.e+o%in& na!ion$- T"e e**e(!$ (an a+read) be $een in
India /"ere no! on+) doe$ i! +ead !o addi!iona+ re.en'e *or (o#%anie$ b'!
a+$o !"r'$!$ !"e &ro/!" o* $#a++ $(a+e ind'$!rie$- To&e!"er $'(" #e("ani$#$
*or (arbon (redi! +ead !o *i++in& o* !"e (on$iderab+e &a% be!/een de.e+o%ed
and de.e+o%in& (o'n!rie$-
48
CARBON CREDIT
C& i*i/is-s
En.iron#en!a+ re$!ri(!ion$ and a(!i.i!ie$ "a.e !radi!iona++) been i#%o$ed on
b'$ine$$e$ !"ro'&" re&'+a!ion- 4an) %eo%+e /ere and $!i++ are 'nea$) a! !"e
'$e o* a no.e+ #ar0e!-ba$ed a%%roa(" !o #ana&in& e#i$$ion$ a+!"o'&" !"e
(on(e%! o* Ca% and Trade e.en!'a++) /on !"e da) in in!erna!iona+
ne&o!ia!ion$- T"e <)o!o #e("ani$# i$ !"e on+) in!erna!iona++)-a&reed
#e("ani$# *or re&'+a!in& (arbon (redi! a(!i.i!ie$ and (r'(ia++) in(+'de$
("e(0$ *or addi!iona++) and o.era++ e**e(!i.ene$$- I!$ $'%%or!in&
or&ani$a!ion !"e BNCCCC i$ !"e on+) or&ani$a!ion /i!" a &+oba+ #anda!e
on !"e o.era++ e**e(!i.ene$$ o* e#i$$ion (on!ro+ $)$!e#$ a+!"o'&"
en*or(e#en! o* de(i$ion$ re+ie$ on na!iona+ (o-o%era!ion- T"e <)o!o !radin&
%eriod on+) a%%+ie$ *or *i.e )ear$ be!/een 2008 and 2012- T"e *ir$! %"a$e o*
!"e EB ET9 $)$!e# $!ar!ed be*ore !"en and i$ ex%e(!ed !o (on!in'e in a
!"ird %"a$e a*!er/ard$ and #a) (o-ordina!e /i!" /"a!e.er i$
in!erna!iona++)-a&reed a! b'! !"ere i$ &enera+ 'n(er!ain!) a$ !o /"a! /i++ be
a&reed in %o$!-<)o!o ne&o!ia!ion$ on &reen"o'$e &a$ e#i$$ion$- A$ b'$ine$$
in.e$!#en! o*!en o%era!e$ o.er de(ade$ !"i$ add$ ri$0 and 'n(er!ain!) !o
!"eir %+an$- A$ $e.era+ (o'n!rie$ re$%on$ib+e *or a +ar&e %ro%or!ion o* &+oba+
49
CARBON CREDIT
e#i$$ion$ @no!ab+) B9A A'$!ra+ia C"ina and IndiaA "a.e a.oided
#anda!or) (a%$ !"i$ a+$o #ean$ !"a! b'$ine$$e$ in (a%%ed (o'n!rie$ #a)
%er(ei.e !"e#$e+.e$ !o be /or0in& a! a (o#%e!i!i.e di$ad.an!a&e a&ain$!
!"o$e in 'n(a%%ed (o'n!rie$ a$ !"e) are no/ %a)in& *or !"eir (arbon (o$!$
dire(!+)- A 0e) (on(e%! be"ind !"e (a% and !rade $)$!e# i$ !"a! na!iona+
L'o!a$ $"o'+d be ("o$en !o re%re$en! &en'ine and #eanin&*'+ red'(!ion$ in
na!iona+ o'!%'! o* e#i$$ion$- No! on+) doe$ !"i$ en$'re !"a! o.era++
e#i$$ion$ are red'(ed b'! a+$o !"a! !"e (o$!$ o* e#i$$ion$ !radin& are (arried
*air+) a(ro$$ a++ %ar!ie$ !o !"e !radin& $)$!e#- ?o/e.er &o.ern#en!$ o*
(a%%ed (o'n!rie$ #a) $ee0 !o 'ni+a!era++) /ea0en !"eir (o##i!#en!$ a$
e.iden(ed b) !"e 2006 and 2007Na!iona+ A++o(a!ion =+an$ *or $e.era+
(o'n!rie$ in !"e EB ET9 /"i(" /ere $'b#i!!ed +a!e and !"en /ere ini!ia++)
reIe(!ed b) !"e E'ro%ean Co##i$$ion *or bein& !oo +ax- A L'e$!ion "a$ been
rai$ed o.er !"ere and *a!"erin& o* a++o/an(e$- Co'n!rie$ /i!"in !"e EB ET9
"a.e &ran!ed !"eir in('#ben! b'$ine$$e$ #o$! or a++ o* !"eir a++o/an(e$ *or
*ree- T"i$ (an $o#e!i#e$ be %er(ei.ed a$ a %ro!e(!ioni$! ob$!a(+e !o ne/
en!ran!$ in!o !"eir #ar0e!$- T"ere "a.e a+$o been a(('$a!ion$ o* %o/er
&enera!or$ &e!!in& a ,/ind*a++, %ro*i! b) %a$$in& on !"e$e e#i$$ion$ ,("ar&e$,
!o !"eir ('$!o#er$- A$ !"e EB ET9 #o.e$ in!o i!$ $e(ond %"a$e and Ioin$ '%
/i!" <)o!o i! $ee#$ +i0e+) !"a! !"e$e %rob+e#$ /i++ be red'(ed a$ #ore
a++o/an(e$ /i++ be a'(!ioned- E$!ab+i$"in& a #eanin&*'+ o**$e! %roIe(! i$
(o#%+ex; .o+'n!ar) o**$e!!in& a(!i.i!ie$ o'!$ide !"e CD4 #e("ani$# are
e**e(!i.e+) 'nre&'+a!ed and !"ere "a.e been (ri!i(i$#$ o* o**$e!!in& in !"e$e
'nre&'+a!ed a(!i.i!ie$- T"i$ %ar!i('+ar+) a%%+ie$ !o $o#e .o+'n!ar) (or%ora!e
$("e#e$ in 'n(a%%ed (o'n!rie$ and *or $o#e %er$ona+ (arbon o**$e!!in&
$("e#e$- T"ere "a.e a+$o been (on(ern$ rai$ed o.er !"e .a+ida!ion o* CD4
(redi!$- One (on(ern "a$ re+a!ed !o !"e a(('ra!e a$$e$$#en! o* addi!iona++)-
50
CARBON CREDIT
O!"er$ re+a!e !o !"e e**or! and !i#e !a0en !o &e! a %roIe(! a%%ro.ed-
T'e$!ion$ #a) a+$o be rai$ed abo'! !"e .a+ida!ion o* !"e e**e(!i.ene$$ o*
$o#e %roIe(!$O i! a%%ear$ !"a! #an) %roIe(!$ do no! a("ie.e !"e ex%e(!ed
bene*i! a*!er !"e) "a.e been a'di!ed and !"e CD4 board (an on+) a%%ro.e a
+o/er a#o'n! o* CER (redi!$- Cor exa#%+e i! #a) !a0e +on&er !o ro++ o'! a
%roIe(! !"an ori&ina++) %+anned or an a**ore$!a!ion %roIe(! #a) be red'(ed
b) di$ea$e or *ire- Cor !"e$e rea$on$ $o#e (o'n!rie$ %+a(e addi!iona+
re$!ri(!ion$ on !"eir +o(a+ i#%+e#en!a!ion$ and /i++ no! a++o/ (redi!$ *or
$o#e !)%e$ o* *ore$!r) or +and '$e %roIe(!$-
51
CARBON CREDIT
BIBLIOGRAPHY
5EBSITEE-
///-($eindia-or&
///-(arbon(redi!-or&
///-&oo&+e-(o-in
///-$(ribd-(o#
///-(arbon!radin&-(o#
///-(redi!#ar!-(o#
///-(d##ar0e!-or&
///-0)o!o%ro!o(o+-in!
///-/i0i%edia-or&
www.ieta.org
52
CARBON CREDIT
http://www.cdmwatch.org
10. http://www.indiainfoline.com
31 Jul 2007, 0000 hrs IST,Sanjeev Choudhary,TNN
"!!%;MMe(ono#i(!i#e$-india!i#e$-(o#MIndiaU&e!$U43UO*UCarbonUCredi!$Mar!i
(+e$"o/M2245328-(#$
FOBRNA19
ICAI- @T?E IN9TITBTE OC C?ARTED ACCOBNTANT INDIAA
A//!0)*i)3 #)$ T#B#*i!) As42/*s !' C#&7!) T&#$i)3 88 CA S#)"#. K
A3&#1#+
Edi!oria+ *ro# !"e =re$iden! reader$ /ri!e +e&a+ '%da!e
53
CARBON CREDIT
54