Carbon Trading is gaining Importance in India post Kyoto Protocol

The Bangalore Chamber of Industry and Commerce (BCIC) along with QualityTonnes (QT) Washington D.C today organized an Interactive Session with Mr. Seth Baruch, Managing Partner of QualityTonnes on " Clean Development Mechanism (CDM) and Carbon Trading".

The QT has been working all over the world providing solutions in the area of climate change and Clean Development Mechanisms including Carbon Trading and has numerous partners including the World Bank.

"Carbon Trading is assuming great importance and Indian companies will have great opportunities in utilizing this facility in the wake of the Kyoto protocol. The Kyoto protocol puts binding commitments on 36 developed countries to reduce overall greenhouse gas emissions, by at least 5 per cent below 1990 levels in the first commitment period 2008 to 2012", said Mr. Seth Baruch.

"Consequently, carbon has become a tradable commodity with an associated value. One ton of carbon dioxide reduced through a Clean Development Mechanism (CDM) project, when certified by a designated entity, is known as a Certified Emission Reduction (CER), which can be traded. One CDM or CER credit is equal to one ton of carbon dioxide, a measure for the market and the main greenhouse gas blamed for global warning and climate change", he added.

Speaking on Clean Development Mechanism (CDM), Mr. Baruch said, "The CDM provides excellent opportunities to ensure that the developing world ceases to be a dumping ground for inefficient appliances that waste precious resources, force the construction of unneeded electricity generation capacity, and cause unneeded greenhouse gas emission. One can enable the adoption of appliance standards in the developing world. By employing the technology transfer potential of the CMD, appliance manufacturers around the world would be forced to produce higher efficiency products and could spur innovations to create more efficiency."

There are three ways of earning emissions credits under the Kyoto Mechanisms. One is the Clean Development Mechanism (CDM), in which a firm of a developed country implements a project in a developing country to reduce greenhouse gases. The second, Joint Implementation, involves developed countries jointly starting a greenhouse gas emission reduction project that earns both nations a credit. Lastly, there is international emissions trading, in which countries obliged to reduce greenhouse gas emissions can buy emission credits from other nations.