Indian companies are set to benefit from carbon credits in a big way.
In fact, India has emerged as the dark horse in the race for carbon credits as the country leads in terms of applying for Clean Development Mechanism projects under Kyoto Protocol for availing of carbon credits.
Out of the total CDM projects for registration under Kyoto Protocol, 32.86 per cent are from India, followed by Brazil with 17.12 per cent.
Speaking on 'Carbon Credits and Related Issues' at the national conference on energy sector here, Ram Babu, managing director of CantorCO2e India Private Limited, said that if you don't have clean energy, you would be faced with the threat of losing your competitiveness.
Over 1,000 companies have applied for registering their CDM projects under Kyoto Protocol across the globe.
He also pointed out that of the total CDM projects applied for registration, 200 entities are from India, followed by Brazil with 17.12 per cent, China 7.59 per cent and Republic of Korea 1.95 per cent, while other countries account for 19 per cent.
Elaborating on carbon credits, he said any company, which reduces carbon dioxide is entitled for carbon credits, which can be sold in the market. Currently, the rate of one carbon credit is euro 13.
Indian entities can have more income from carbon credits than their core business, he claimed.
The total carbon credit market was worth $25 billion last year. Not only that, there is a demand to reduce 1 billion tonne of carbon emissions in the world, so that threats like global warming could be mitigated.
As against the total demand, if India accounts for one fifth, it works out to be 200 million tonnes of carbon emission reduction. With this the Indian entities can earn euro 2 billion by 2012.
He also lamented the fact that though many sugar factories in Karnataka and Tamil Nadu have registered their CDM projects, not a single sugar cooperative from Gujarat decided to implement CDM projects.