9/15/12 DNA: India - Gujarat leads with 17.

28% of Indias carbon credits

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Gujarat leads with 17.28% of Indias carbon credits
DNA / Himansh Dhomse / Tuesday, June 5, 2012 14:23 IST
The theme of World Environment Day-2012 is, Green Economy: Does it include you? Yes, Gujarat is very much part
of the Green Economy. It has an impressively large number of clean development mechanism (CMD) projects that
have made it Indias biggest earner of certified emissions reduction (CER) credits.
The number of CMD projects in Gujarat and the states CER earnings are much higher than those of Argentina,
Israel and some other countries of the world. The state has earned CERs credits worth of Rs3,486 crore or 505.19
million euros.
So far, the 255 CDM projects in Gujarat have earned 12.63 crore CER credits (1 CER=4 euro=Rs276.04). The state
may be third in India in the number of CDM projects it has but is ahead of all other states in CER earnings.
The National Clean Development Mechanism Authority (NCDMA) under the Union governments ministry of
environment & forest has, so far, approved 2,231 CDM projects in the country. The total CER credits earned by these
are around 73.08 crore which are worth Rs20,173 crore or 2.92 billion euros.
Of the total CDM projects approved in India, 11.42% (or 255 projects) are in Gujarat which has so far earned CERs
worth of Rs3,486.38 crore or 505.19 million euros. Gujarats share in the countrys total CERs earned is 17.28%.
However, China is much ahead of India in number of CDM projects as well as in CER earnings. The expected
average annual CER credits earned from registered projects in India stand at around 6.51 crore, estimated to be
worth Rs1,800 crore or 260 million euros.
India contributes around 10.92% to the worlds average annual CERs but China leads with 64.24% share (38.33
crore). Of the total CDM projects in the world, Indias share is 20.01% while China leads with a 48.53% share.
However, industries in Gujarat are a bit worried as the value of CER credits has been slashed by two-third in the last
four years.A few years back, a CER was traded for 12 euros. Today it is worth around 4 euros. Even consultants and
experts who had minted money in carbon credits a few years back, have disappeared, said a carbon credit expert
and MD of Sintex Industries, SM Dangayach. Shailesh Telang, founder of GreenCleanGuide, a green portal
dedicated to providing all information under the environment, energy and sustainability domain, believes that Indian
industries should continue to address climate change.
India is a signatory of the Kyoto Protocol which is an international agreement on greenhouses gas (GHG) reduction
targets. Kyoto protocol was signed in 1997 and it assigned GHG reduction targets to developed countries for the
2008-2012 period, known as the first commitment period. This ends in December this year.
The second commitment period would start from January 1, 2013 and would extend up to either 2017 or 2020, he
said. According to Telang, developed countries had clearly mentioned in the conference that they will sign the treaty
on legally-binding GHG emission reduction targets only after developing countries like India and China accept
emission cuts.
As per the Durban agreement, the participating countries have agreed to decide on the modalities and procedures
of the second commitment period by 2015 and implement it from 2020. Thus, it is expected that big emitters like
China, India and the US will have legal emission commitments post-2020, he said.
9/15/12 DNA: India - Gujarat leads with 17.28% of Indias carbon credits
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