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CARBON

CREDITS

Time to Act…
….
INCEPTION OF CARBON CREDITS

Kyoto Protocol

- A voluntary treaty signed by 141 countries

- Main aim is to reduce GHG emissions by


5.2 % by 2012

- Empowering the market to care for the


environment
WHAT ARE CARBON CREDITS??
• Important financial instrument
• Primary goal - reduce emission of Green
House Gases
KYOTO PROTOCOL MECHANISMS
TRADING MECHANISM
CARBON TRADE IN INDIA
• India a signatory to Kyoto Protocol. India acceded to
protocol in 2002.
• Due to low GHG and low financial and technical
capacities India have no GHG Reduction Commitments.
• Credit trading in India is expected to touch US $ 100
billion by 2010.
• India is the second largest seller of carbon credits in the
world with six per cent share in 2007 while China tops
the list with a whopping 73 per cent share, as per World
Bank report.
INDIA’S POSITION ON CLIMATE CHANGE
Rank   Country   Annual CO2 emissions Percentage of total 
(in thousands of metric  emissions
tons)  
-  World 27,245,758 100.0 % 
1  United States 6,049,435 22.2 % 
2  China and  Taiwan 5,010,170 18.4 % 
-  European Union 4,001,222 14.7 %
3  Russia 1,524,993 5.6 %
4  India 1,342,962 4.9 %
5  Japan 1,257,963 4.6 %
6  Germany 860,522 3.1 %
7  Canada 639,403 2.3 %
8  United Kingdom 587,261 2.2 %
9  South Korea 465,643 1.7 %
10  Italy 449,948 1.7 %
CDM MECHANISM IN INDIA

• Total number of registered CDM projects are 300.


• The issued credits stands at 34 million.
CER PURCHASERS

Organization Type Examples

Governmental purchase Organization Japan Carbon Fund, UK DEFRA’s


CCPO, Italy Spain, Netherlands,
Canada, Austria, Portugal, Germany,
France, Belgium, Sweden.

Multinational Organizations World bank

Brokers/Traders Ecosecurities, Natsource, CO2.com,


Morgan & Stanley, Akzo Nobel,
Barclays, HSBC, Pointcarbon,
Robobank.

End Users Kepco, Depco, Shell.


INDIA GOES GREEN

• Business : Challenges and Opportunities

• Energy Efficiency

• Renewable Energy

• Clean Technologies

• Green Buildings
CARBON CREDITS TRADING

• Advantages

• Disadvantages
SUGGESTIONS

• Private sector and public sector participation

• To increase the price of CER’s

• Introduction of Carbon Tax

• Raising the awareness of CDM in India

• Financial Assistance
Thanks for your attention

By-
Peeyush Chaudhary
14

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