The Hindu Business Line : New fund-raising route for clean tech projects

Indian firms wanting funds for their clean technology projects can now approach TERI, which would help them raise funds from the Chicago Climate Exchange (CCX).

The CCX and The Energy and Resources Institute (TERI) have entered into an agreement to develop the greenhouse gas emission offset market in the Indian subcontinent, which include India, Sri Lanka, Pakistan, Nepal, Bhutan and the Republic of Maldives, said a statement from TERI.

TERI will facilitate the registration of 1.5 million tonnes of carbon dioxide from offset projects to the CCX trading platform in 18 months.

CDM mechanism

However, since the US has not ratified Kyoto Protocol, the process of validation and registration of each credit would be different from the method that several Indian companies follow now as per the clean development mechanism (CDM) of the UN.

When asked about the exact procedure, TERI officials said, "It would be as per the CCX processes." Since American firms are not mandated to reduce green house gas, they can voluntarily buy emission reductions from the exchange.

Unconventional projects can register

Several unconventional projects, that may be difficult to register under the CDM, may be able to register themselves in CCX. However, the rate for each tonne of emission reduction is likely to be lower than the rate of the CDM of UN.

The Chicago Climate Exchange greenhouse gas emission reduction and trading programme is supplemented by growing project-based emission offsets portfolio, which includes agricultural soil sequestration, methane capture and destruction, forestry and renewable energy and energy efficiency offsets, said the release.

Dr Richard L. Sandor, Chairman and CEO of CCX, stated, "We hope that the standardised offset protocol, streamlined approval process and electronic trading feature that CCX has to offer will be attractive to Indian participants."