It is a market expected to grow to US$100 billion in the near future, and Indian firms want to reap some of the benefits.
The Clean Development Mechanism (CDM) under the Kyoto Protocol allows richer countries to trade their emission-reduction targets with developing countries by buying carbon credits earned by the latter for projects reducing emission of greenhouse gases, those suspected of accumulating in the Earth's atmosphere and trapping the sun's heat, contributing to global warming.
Recent estimates predict that uncontrolled carbon emissions could cost the global economy more than $200 billion annually by 2030 unless the pollution levels are controlled. Environmental group Greenpeace has said that shifting to renewable energy and reducing carbon emissions could save Southeast Asia $80 billion annually.
Indeed, with the Western world (read Europe and Canada, not the United States yet) looking at the CDM seriously, Indian firms do not want to lose out on the business opportunity due to investments in clean technology.
Recently, an Indian firm won the single largest issuance of carbon credits by the United Nations Framework Convention on Climate Change, which awarded 5.4 million carbon credits to two projects owned by India's JSW Steel. One project was issued 4 million carbon credits, the single biggest credit.
The Federation of Indian Chambers of Commerce and Industry has said that Indian companies may earn almost $4 billion through carbon-credit sales in the near future....
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