G. Gurumurthy

Coimbatore, July 5

THE Dindigul-based Tamil Nadu Spinning Mills Association (TASMA) is planning to create additional revenue stream for wind energy projects owned by its member-mills

For this, it will facilitate the registration for saleable carbon emission reduction (CER) certification or `carbon trading.' The textile body has bundled its member-mills' wind turbine generating (WTG) units into a single project entity to prepare a project design document (PDD) and its validation mandated under the UN's Clean Development Mechanism (CDM).

CDM is the regulatory platform under the United Nations Framework Convention on Climate Change (UNFCCC) for the creation and sale of the CER certificates issued to companies in developing countries through the validation of cleaner energy projects that help reduce emission of greenhouse gases such as carbon dioxide.

TASMA will appoint an environmental consultant to draft the PDD. The PDD will cover aspects such as the baseline for the carbon emissions.

The association, which has short-listed three consultancy firms Synergy Global, ERM Consultancy and URS Consultatively is expected to finalise one of them for preparing the PDD within the next few days, according to TASMA sources. Based on the PDD, the validation of the project again by a third party evaluator will be carried out before it is presented to the CDM executive board at Bonn, Germany for the final registration. The issuance of the CER certificates will be possible only after its registration with UNFCCC.

TASMA is likely to have TUV SUD, the German certification body for climate change projects, as the validating agency for the PDD, though the association is yet to complete the commercial terms with the organisation. TASMA has got 89 WTG units of its members for the CER certification programme. Perhaps the first among the textile bodies to propose the CER certification for its wind energy project, TASMA's Managing Committee headed by its President, Mr A. P. Appukutty, plans to get the project registered with UNFCCC by December 2005.

The CER certificates are supposed to have huge resale potential in the emission trading or the carbon trading market in the face of huge emission reduction obligations pending against companies in developed countries to meet the emission levels of 2012. UNFCCC's Kyoto Protocol allows the commercial exchange/transfer of CER certificates to enable firms in developed countries to meet the emission reduction levels through the purchase of certificates from developing economies.

(This article was published in the Business Line print edition dated July 6, 2005)
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