The Hindu

India leader in reduction of greenhouse gases

29 June 2006

NEW DELHI: India has emerged world leader in reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs) in the past two years. It expects to generate USD 2.2 billion from CDMs by way of carbon credits, Union Environment and Forests Secretary Prodipto Ghosh has said.

Carbon credits are measured in units of certified emission reductions (CERs). Companies gain these credits by adopting cleaner technologies.

Each CER is equivalent to one tonne of carbon dioxide reduction. Companies from developed countries can meet mandated greenhouse gas reduction under the Kyoto protocol by buying carbon credits from other nations.

Mr. Ghosh told reporters that India invested USD 3.8 billion in the CDM projects. In the pipeline were over 300 projects, which had to be completed by 2012.

These 300 projects, the largest number in the world, with the closest countries behind India having just 40-50 awaiting clearance, included those in the waste management, forest, power and steel sectors. A World Bank-run capacity building project in India was nearing completion.

At present, India contributed about three per cent of the global greenhouse gases against the global average of 5.2 per cent.

Its carbon credits market saw a rapid increase over the last two years. It had the potential to emerge leader among the developing countries, exploiting the market for CERs and thus helping in arresting global warming through CDMs under the United Nations Framework Convention on Climate Change.

CDM was one of the three mechanisms envisaged by the Kyoto Protocol in 1997 to check the emission of greenhouse gases. Developed countries, which have exceeded the levels, can either cut down emissions or borrow or buy carbon credits from developing countries.

For example, the United States accounts for 30 per cent of the global emissions and India, with three per cent, can transfer part of its allowed emissions to the developed countries and earn money.

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