New Delhi: The government has asked the industry, including the public sector units, to bunch up their projects for reduction of carbon dioxide emissions which can be traded in the $10 billion (Rs40,400 crore) global carbon credit market.
Secretary in the ministry of forests and environment Meena Gupta convened a meeting of industry bodies CII, Ficci and Assocham last week, along with representatives of public sector units, to review the progress in the clean development mechanism (CDM) projects.
CDM is a carbon project submitted by a company to earn carbon credits in the form of certified emission reductions (CERs).
These CERs are later encashed in the exchanges. “Due to small size of CDM projects, Indian companies are unable to encash the carbon credits,” an official said.
The ministries in-charge of the public sector units have also been asked to devise schemes for reducing emission of carbon dioxide and develop the CDM projects for trading in the carbon credits exchanges.
Indian firms such as ITC, Suzlon, Shriram Fertilizer, Tata Steel and Balrampur Chini Mills have been able to trade their carbon credits in the international exchanges. Some of these exchanges have already been opened in the US, Australia, Japan and Singapore.