At Tuas, Singapore, a bio-methanisation plant processes up to 800 tons of organic waste per day generating an estimated 6 MW of electrical energy per hour, powering over 10,000 households or equivalent industrial facilities.
In Thailand, generators fueled by methane from swine manure make electricity and biogas is generated from waste water created at large-scale farms.
Closer home, in Andhra Pradesh, villagers run their tractors with bio-diesel they extract from Pongamia trees in their village. The Delhi government too plans to start a few projects in the city that will be entirely based on green norms, including a new hospital in Dwarka and Tyagraj Stadium. Why, one now even has CNG creamtoriums in India's capital city!
What do all these projects have in common? All these are direct result of the 1997 Kyoto Protocol, a global initiative to reduce emission of greenhouse gases linked to global warming. By developing projects under the clean development mechanism (CDM) of the UN, organizations spearheading such projects earn carbon credits that are sold abroad.
As the global warming threat looms large over the globe, Asia, which in the coming years will emerge as one of the biggest energy consumers, is gearing up to cash in on the opportunity created by the rising levels of greenhouse gas (GHG) emissions. With the developing countries in emerging markets such as Asia-Pacific region industrialising at ultra rapid pace, there are a number of ways to rein in pollution. But are we ready?
"The rapidly growing Asian economies and their increase in energy demand provides a good opportunity for Asia to remain a key player for the carbon market," says Andrei Marcu, President and Chief Executive Officer, International Emissions Trading Association (IETA).
Wondering, how the Kyoto protocol spells a business opportunity? Commonly referred to as carbon trading, it is a system whereby countries or individual companies are given emission targets. The Protocol under the UN Framework Convention on Climate Change primarily assigns mandatory emission limitations for the reduction of GHG emissions to the signatory nations.
It is because of Kyoto protocol that countries across Asia are promising sweeping action, from cleaning up concrete plants, to sowing new forests that absorb carbon dioxide, to harnessing methane from landfills to generate power. And the list is increasing as the threat looms larger than ever. The system is helping foster green investments in countries that are home to some of the world's biggest polluters.
According to a World Bank study, while the global carbon market tripled in 2006 to $30 billion from $10 billion in 2005, carbon emissions trading in Asia reached a volume of $21.5 billion from January to September 2006, more than doubling the total volume for 2005.
While the key buyers of carbon include primarily private companies in Europe, the biggest seller globally is China. India has 12 per cent market share, according to IETA's data. However, while the number of projects in India is larger than China, the scale is much lower.
Most of the CDM action in India is witnessed in the energy sector, followed by manufacturing and chemical sectors.
With the supply of carbon credits from India expected to be in the range of 300 million CERs (carbon emission reductions) by 2010, a $3 billion opportunity is awaiting Indian companies. Moreover, once countries like the US and Australia (two notable exceptions to the Kyoto protocol) join it after 2012, the market for carbon credits is expected to increase considerably.
Says Marcu, "Although significant changes are taking places in the US, Australia and Canada, there are still pending issues. We need to ensure the credibility of the market. I would characterise the market as resilient and successful and with a clear growth potential." (ET)
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
State Bank of India (SBI), today entered into Memorandum of Understanding (MoU) with MITCON Consultancy Services Limited, Ecosecurities India Private Ltd and Cantor CO2E India Private Ltd for jointly providing one-stop solutions to industries for Clean Development Mechanism (CDM) projects and emissions trade. The MoU was signed by Mrs. Bharati Rao, Deputy Managing Director & Chief Credit Officer in the presence of Shri O.P. Bhatt, Chairman, Shri T.S. Bhattacharya, Managing Director, and other senior functionaries of the Bank at SBI's Corporate Office in Mumbai.
Speaking on the occasion, Shri O.P. Bhatt said, "As India's largest Bank, we have a strategic role to play in addressing environmental issues, both in terms of the risks they pose and the new opportunities they create. SBI, proposes to provide a single point delivery of services related to Carbon Credits / Clean Development Mechanism (CDM), under the Kyoto Protocol, to its customers. These include apart from finance to implement CDM projects, advisory services and value added products like securitisation of carbon credit receivables, carbon credit delivery guarantees and escrow mechanism for carbon credits. With its large base of SME customers SBI sees the possibilities for aggregating / bundling of individual CDM projects from SMEs into viable sized lots as a specific and special area of thrust. Creating awareness of the CDM among the industrial units and the additional cash flows it would generate would be the focus of the Bank. With so many potential buyers and sellers in this market, counter party risk can become a key risk in carbon credits trading and SBI with its wide Indian and International presence can play a major role here. Apart from the opportunity of generating substantial fee based income, this is also an opportunity for the Bank to support the fight against global warming. The change in the Earth's climate and its adverse effects are a common concern of humankind and as a responsible Corporate citizen, the Bank also shares this concern and would like to contribute its mite towards this cause ".
Analysts peg the global carbon trading market at $100 billion by 2010. Indian carbon market has the potential to supply 30-50% of the projected global market of 700 million CERs by 2012. SBI is chalking out an aggressive strategy to tap into this market.
The tie up with reputed CDM Consultants will benefit a large number of industrial units who will from a complete package of services through guidance from reliable partners with proven experience in the Carbon Credit business with the backing of State Bank of India.
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
Posted: 07/Aug/2007 at 11:12pm
One of the management institutes in Pune has organised a week-long lecture series on the subject of "Global Warming & Carbon Trade....who really benefits?"
Last evening I attended the talk by a former Govt Secretary. While nothing much new was mentioned apart from potential/opportunity etc...here are some highlights from that presentation:
CERs (Certified Emission Reductions) traded on exchanges are as volatile as Crude Oil futures. Range of Euro 6 to Euro 10 per CER.
The opportunity for countries like India is visible over next 4~5 years.
During global seminars on this subject, majority of the participants are from Financial Institutions, Insurance Companies.
Consultants (middle-men as usual) are the biggest beneficiaries!
RIL's Jamnagar refinery has received approval for the largest Waste Heat Recovery System.
The next world war, if any would be over Water Resources not Oil!
I couldn't go today for CII's presentation due to other engagements.
Life can only be understood backwards—but it must be lived forwards
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
Posted: 29/Aug/2007 at 12:32pm
The other side of carbon trading
Planting trees in Mount Elgon National Park in eastern Uganda seemed like a project that would benefit everyone. The Face Foundation, a nonprofit group established by Dutch power companies, would receive carbon credits for reforesting the park's perimeter. It would then sell the credits to airline passengers wanting to offset their emissions, reinvesting the revenues in further tree planting. The air would be cleaner, travelers would feel less guilty and Ugandans would get a larger park.
But to the farmers who once lived just inside the park, the project has been anything but a boon. They have been fighting to get their land back since being evicted in the early 1990s and have pressed their case with lawsuits.
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
Posted: 31/Aug/2007 at 12:53pm
Morgan Stanley offers carbon neutral service
The Morgan Stanley Carbon Bank provides carbon verification and offsetting services that are billed as living up to regulated market standards. Carbon trading is the latest rage, but like any other hot commodity, banks are beginning to corner the experts in the market.
India, which accounts for 31 per cent of world’s CDM (Clean Development Mechanism) projects, sees a huge opportunity for small hydro power projects to get carbon credits or Certified Emission Reductions (CERs).
There is an estimated potential of 15,000 MW from small hydropower projects in the country. Of this, about 2,000 MW has been tapped so far. “This shows that there is a significant potential for taking up CDM projects in this segment,” Mr V. Subramanian, Union Secretary in the Ministry of New and Renewable Energy, told Business Line. The Kyoto Protocol allows hydropower projects with less than 25 MW capacity to claim carbon credits. “We have 70 small hydro projects in the pipeline to get the CDM status. Of these, 31 have already been registered, while 34 are at the validation stage,” he said.
Life can only be understood backwards—but it must be lived forwards
Joined: 02/Oct/2007
Location: India
Online Status: Offline
Posts: 2037
Posted: 09/Nov/2007 at 10:41am
Will the next big investment opportunity lie in carbon trading?
Quite
a few Indian companies are poised to benefit from this new trend
happening in developed countries. While the IT sector may use this as a
heaven-sent opportunity to break out of the dollar trap, there must be
a number of companies in other sectors using this as a greenfield
opportunity.
Yet again there might be other companies who
will find new business in this sphere. It would be very profitable if
TEDdies can zero in on these companies and get in at the ground floor
level itself.
Who are these companies? And how are they making use of this greenfield opportunities?
A glimpse on the potential of this industry is provided by columnist
Thomas Friedman of the New York Times. According to him, the next big
outsourcing opportunity for Indian companies would be in the sphere of
carbon trading.
In an article published in the NYT and syndicated elsewhere companies would have to undertake energy programming and monitoring programmes so that they become carbon neutral and more energy efficient.
Friedman cites the example of Dell Inc which would become "carbon neutral" in its operations by the end of 2008.
"With a carbon
tax or cap-and-trade legislation looming, every day you are going to
see more and more companies doing the same thing. It is going to be the
next big global business transformation. And it's going to require tons
of software, programming and back-room management to measure each
company's carbon
footprint and then monitor the various emissions-reduction and
offsetting measures on an ongoing basis," writes Friedman.
He then goes on to quote his favorite IT entrepreneurs Nandan Nilekani, of Infosys Technologies and B. Ramalinga Raju,
chairman of Satyam Computer Services.
Carbon
reduction programmes will get bigger in the next few years among
western companies as global warming becomes a serious concern. I think
the first step will be when Western companies opt for the easy way by
letting Indian companies benefit by greening the local environment.
Osram is doing it in Maharashtra's Pune and Thane cities with free CFL bulbs. They will have subsequently clean their own environment at home. But at every stage there are opportunities to be exploited.
Why
stick to Indian companies? We can even invest in companies around the
world that offer cutting-edge technologies. The potential is endless.
Latest issue of Bloomberg carries an excellent Cover Story on Carbon Credits (Greenhouse gases). California Governor Arnold Schwarznegger is doing a terrific job in the Global warming space and the likes of Warren Buffet, Vinod Khosla, Murdoch, Yahoo CEO,etc are supporting him in raising money. He has managed to raise more than $121 mn, California record.
Vinod Khosla says next 10 Googles will emerge from California.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
