Where there is smoke

Mumbai, Feb. 22: A host of agencies, including consultancy firms, are planning to cash in on carbon credit trading in India.

Trading in carbon credits is an innovative way to keep carbon dioxide emission from industries ? which leads to global warming ? in check.

Developed nations, which emit more carbon dioxide than their developing counterparts, have to spend a lot on technology upgradation to lower emission levels.

Under the Kyoto Protocol, industries in developed countries can offset carbon dioxide emissions by buying carbon credits from developing countries that are generated through projects that cut emissions. Every tonne of carbon dioxide not emitted is considered as one credit and every carbon credit fetches a company around $3-6.

EcoSecurities, which is listed on the London Stock Exchange, is an originator of carbon credit projects that started its India operations today. The company, which has opened an office in Mumbai, also plans to set up other centres in the country. EcoSecurities plans to invest heavily in the origination, implementation and commercialisation of a number of carbon credit projects in India.

In India, SRF Ltd and Gujarat Flourochemicals are among a few companies, which are looking at raising additional revenues by selling carbon credits. SRF expects to generate revenues worth Rs 85 crore by selling 1.4 million carbon credits this year from its Clean Development Mechanism (CDM).

The United Nations Framework Convention on Climate Change?s Clean Development Mechanism (CDM) has been put in place to facilitate the trade of carbon credits between the developing and developed nations.

Gujarat Flourochemicals Ltd has been registered for carbon trading by the United Nations Framework Convention on Climate Change (UNFCC) after it proposed to cut HFC 23 ? a greenhouse gas emitted while making refrigerant chlorofluorocarbons. The company expects to generate 4-6 million carbon credits annually from early next year.

While many companies are also looking at generating additional revenues through the sale of carbon credits, consultants such as PricewaterhouseCoopers (PwC) and Ernst & Young are already advising more than 100 CDM projects in India.

EcoSecurities will primarily focus on small and medium enterprises developing CDM projects in sugar, paper and pulp, nitrate-based fertilisers, renewable energy, biofuels and biomass, Pedro Moura Costa, founder, president and COO of the company, said.