Kyoto Protocol means green energy projects for India
: "The Kyoto Protocol will bring into force a clean development mechanism (CDM) wherein developed nations would be able to trade part of their commitment to reducing greenhouse gasses by buying green energy credit from projects in developing countries like India. .. So far the government has endorsed 46 out of the 150 projects submitted for CDM credit to help them earn extra dollars. Every tonne of carbon dioxide reduction through use of clean technology like wind, hydropower and biodegradable waste can fetch anywhere from $5-$6.
In the case of projects that reduce emission of methane gas, generated from municipal waste, the returns are expected to be 20 times more, while in the case of hydrofluorocarbons (HFCs), which is 6,000 times more harmful than carbon dioxide, the returns are proportionately higher.
"With the carbon trading mechanism expected to bring in anywhere between five and six paise per unit of clean power generated to as much as 50-60 paise per unit, green energy will now be a profitable venture," Mathur told IANS. [Ajay Mathur, president and CEO of Senergy Global, formerly with World Bank]
He cited the example of how Gujarat Fluorochemicals Ltd, by investing in a project to burn the HFCs being emitted into the air, is now getting revenue that will soon pay off its investment while helping to clean environment pollution. Gujarat Fluorochemicals was one of the first projects to be certified for CDM by Britain.
All clean energy projects that have been commissioned after January 2000 are eligible for certified carbon trading. India has emerged as the largest supplier of projects followed by Brazil. China is expected to enter the market soon, with a difference, as the Chinese government would sell the emission reduction credits through mega projects, said Mathur.
"In the 46 projects that have been endorsed so far, there is no foreign funding upfront. But there are contracts in place that will bring in extra revenue apart from the income the project would have anyway generated," said Mathur, who is a key member of the Indian Carbon Market Group. ..
Over the next few years till 2012, the first phase of commitment for developed nations under the Kyoto Protocol, an estimated two to three billion tonnes of carbon dioxide emissions is to be reduced through energy efficiency, clean technology and other project like afforestation.
"These efforts are expected to generate around $12-$15 billion additional revenues for new clean energy projects. This should leverage investments of over $100-150 billion in clean energy globally. Given the present trend, India can expect at least one-third of the estimated investments," said Mathur.
An important facet of the CDM is it would help promote waste management projects on the lines of the Lucknow, Hyderabad and Chennai experiments to generate power from municipal waste. This would not only help tackle growing mounds of biodegradable city waste but also reduce methane emission." 9:01:10 AM