Plantations are eligible to claim carbon credits as they are greenhouse depositories, Union commerce minister Kamal Nath has said.
Addressing the 114th annual conference of United Planters Association of South India (Upasi) on Monday, Nath said commodity boards, government trade promotion bodies and the industry need to set up a special purpose vehicle to streamline the process of claiming the carbon credits.
These credits are tradable permits given to companies, other entities that cut their carbon emissions by investing in clean technology.
The credits can be bought by industries mandated by the Kyoto protocol, to reduce their carbon emissions below a threshold.
Nath’s comment came in response to a demand by J.K. Thomas, president of Upasi.
“The (Kyoto) protocol favours carbon credits for countries and organizations that plant new trees where forests have been destroyed,” Nath said.
“In the case of plantations, they were maintaining the flora and fauna and should not be denied carbon credits under the garb that they were doing business as usual,” he added.