The Hindu Business Line : World Bank issues LI to buy carbon credits from Fal-G

THE World Bank has issued a Letter of Intent (LI) for the purchase of 8,00,000 tonnes of carbon credits from the FaL-G brick and block industry at $5/tonne of carbon-dioxide equivalent.

The LI was signed by Mr Ken Newcombe, PCF Fund Manager & Senior Manager, Carbon Finance Business, World Bank, and Mr Kalidas, Director, Institute for Solid Waste Research & Ecological Balance (INSWAREB), Visakhapatnam, at Washington recently.

INSWAREB has been promoting Fal-G technology, an eco-friendly method of utilising flyash wastes from power plants for the last four years. FaL-G bricks and blocks do not need any thermal energy whereas the traditional walling product, clay bricks, consumes over 200 tonnes of coal per every million bricks of output. Thus, FaL-G is well qualified as emission-abating project to receive the benefits of carbon credits. The institute would bundle over 300 licensed plants of FaL-G brick production and transfer the credits to World Bank over the next 10 years. For this purpose, it had drawn a monitoring and verification mechanism. The earnings of the credits would go to the micro units in pro-rata to their annual output, it said in a press release here.

To accomplish this task successfully, tiny entrepreneurs would be facilitated with project loans and working capital, the repayment of which would be considerably taken care of by the carbon credits. Thus, the entrepreneurs virtually get the funds free if they perform well both in production and sales.

INSWAREB has catalysed a commercial organisation, Eco-Carbon Pvt. Ltd, which functions as the project sponsor to coordinate all the commercial activities of this bundling programme. After extensive evaluation and an in-depth study, the World Bank observed the FaL-G brick activity as the fittest for community development.

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