Financial Daily from THE HINDU group of publications
Thursday, Jul 07, 2005
Financial Daily from THE HINDU group of publications Thursday, Jul 07, 2005 |
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Corporate
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Environment Hyderabad co in deal to sell carbon credits to Japan firm Sriram Srinivasan
Chennai , July 6 HYDERABAD-based Eco Carbon is set to sign a deal to sell 6 lakh tonnes of carbon credits to Japan Carbon Finance over a 10-year period. Eco Carbon's co-founder, Mr N. Kalidas, said his plan was to rope in 20 big corporates who can set up plants to produce "eco-friendly" bricks in large numbers — a proposal he had initially put forward to Germany's KfW Bank Group. The German group, after taking a while to get its Government's go-ahead, had only a few days ago expressed its willingness to take negotiations forward, by which time talks with Japan Carbon Finance were at an advanced stage. This means, in order to accommodate both parties, Mr Kalidas has to rope in more companies than earlier planned. The arrangement works like this: the companies will produce bricks and blocks through FaL-G, a proprietary technology developed by Eco Carbon's sister concern that avoids the use of thermal energy, and thus "eco-friendly." The proceeds that Eco Carbon gets from selling carbon credits will be distributed proportionate to what each company's output is. Though Mr Kalidas refused to divulge the exact price per tonne, he indicated that it is higher than the $5 rate agreed upon by Eco Carbon in an earlier deal with the World Bank. Eco Carbon has also said it's willing to sell more than the agreed figure, with the additional credits proposed to stem from 200 or more micro industrial units that will be set up for the purpose. Japan Carbon Finance was set up last year in Tokyo with the objective of purchasing carbon credits, and for this it can dig into a fund pool supported by companies such as Japan Bank for International Co-operation, Development Bank of Japan, Nippon Oil, Mitsubishi Corp, and Chubu Electric Power, among others. The Kyoto Protocol requires developed countries to cut greenhouse gas emissions by 5.2 per cent between 2008 and 2012 from 1990 levels. They can, however, offset their emissions by claiming carbon credits for the implementation of emission-reducing projects.
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