Punjab poised to emerge leader in carbon trading

Mumbai, Nov 17 | Updated: Nov 18 2005, 06:03am hrs
Punjab may soon emerge as a leader in the field of carbon trading if it is able to clinch the biggest carbon trading initiatives aggregating to well over $1.2 billion.

Delhi-based Law Associates Works Solutions (LAWS), a legal consultancy and advisory company, is currently involved in the closure of the three deals.

Two are geared towards the agriculture sector while one project covers the distillery industry. The project from the agriculture sector has been premised on the fact that the current shortage of power in the state would be largely serviced by biomass/biogas projects to be set up across the state.

The Japan Carbon Fund and the Japan Bank of International Co-operation are tipped to be the major financial players in this project.

In distilleries, a new method called vermi-composting would replace the common effluent treatment scheme at the cost of Rs 25,000 per month.

When contacted, a spokesperson for LAWS confirmed these developments.

Each 1 mw bio-mass plant to be set up at a cost of Rs 3.5 crore would supply power to about two villages on an average.

This project is also capable of generating about 1 million certified emission reductions (CERs) per year which would aggregate to $6-8 million a year for the next 10 years.

This is assuming that the price would stagnate at 7-8 euro per CER. If the the price of CERs increases then this number could jump to almost $45-46 million per annum.

Another project is the setting up of solar powered pumps in five-hectare holdings, with each pump costing Rs 3.5 lakh. There are 10 lakh registered pumps in the state and the CERs to be generated from this project would be in the region of $30-32 million a year.

Punjabs additional advocate general Atul Nanda said Carbon trading and earnings from carbon credit based on carbon purchase agreements is a revolutionary concept in legal and commercial terms. It is an initiative which is backed by the support of the common farmer and the industry.