‘Carbon’ and fashionable?...Of course!
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and plastic money are for the laymen, you cavemen! India Inc. is betting heavily on carbon money. Carbon here refers to credits (one carbon credit is equal to one tonne of CO2) that companies can earn by reducing emissions of greenhouse gases and selling them to those who need it, especially developed countries.
No doubt, emissions reduction can foster sustainable development, create clean technology in a carbon-less economy and produce local benefits among others. But really, carbon credits have signify cant monetary value for India Inc.. Companies like Reliance Energy, Jindal Steel, Gujarat Ambuja, Grasim Cement and a few others have joined the race for earning emission reduction benefits, which has the potential of bringing in annual flows of as much as $300 million into India, and all simply by incorporating technological changes, which will lower carbon emissions and will enable these firms to sell those reduced emissions (read, credits). A report by Tata Energy Research Institute (TERI) states that companies in the power business can tremendously benefit given that power transmission in India comes with a large percentage of transmission & distribution losses, which, if reduced, can automatically qualify for credits. Similarly, fertiliser companies too are suffering notional losses to the tune of 20 to 30 million euros. Firms like Tata Chemicals, Chambal Fertilisers et al have failed to take carbon advantage.
But then, which countries can Indian firms sell these credits to? “India is not amongst the Annexure 1 nations (as per Kyoto Protocol), which means that India is eligible to sell credits to those nations that are in Annexure 1,” remarked TERI’s Dr. P. P. Bhojvaid to B&E. To the chagrin of the US, India, as also China, South Korea and some others, are currently exempted from adherence to Kyoto Protocol’s emission limits! And the ‘fashionable’ philosophy visibly running around is, “If you have it, why not flaunt it?” Of course!
B&E Research: Gynandra Kashyap
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Paper
and plastic money are for the laymen, you cavemen! India Inc. is betting heavily on carbon money. Carbon here refers to credits (one carbon credit is equal to one tonne of CO2) that companies can earn by reducing emissions of greenhouse gases and selling them to those who need it, especially developed countries.No doubt, emissions reduction can foster sustainable development, create clean technology in a carbon-less economy and produce local benefits among others. But really, carbon credits have signify cant monetary value for India Inc.. Companies like Reliance Energy, Jindal Steel, Gujarat Ambuja, Grasim Cement and a few others have joined the race for earning emission reduction benefits, which has the potential of bringing in annual flows of as much as $300 million into India, and all simply by incorporating technological changes, which will lower carbon emissions and will enable these firms to sell those reduced emissions (read, credits). A report by Tata Energy Research Institute (TERI) states that companies in the power business can tremendously benefit given that power transmission in India comes with a large percentage of transmission & distribution losses, which, if reduced, can automatically qualify for credits. Similarly, fertiliser companies too are suffering notional losses to the tune of 20 to 30 million euros. Firms like Tata Chemicals, Chambal Fertilisers et al have failed to take carbon advantage.
But then, which countries can Indian firms sell these credits to? “India is not amongst the Annexure 1 nations (as per Kyoto Protocol), which means that India is eligible to sell credits to those nations that are in Annexure 1,” remarked TERI’s Dr. P. P. Bhojvaid to B&E. To the chagrin of the US, India, as also China, South Korea and some others, are currently exempted from adherence to Kyoto Protocol’s emission limits! And the ‘fashionable’ philosophy visibly running around is, “If you have it, why not flaunt it?” Of course!
B&E Research: Gynandra Kashyap
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
2 comments:
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- Norman
good points and the details are more precise than elsewhere, thanks.
- Murk
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