FICCI launches National Programme on Clean Development Mechanism

New Delhi, Apr 24 (UNI) A national programme on creating awareness on Clean Development Mechanism (CDM) was today launched by the Federation of Indian Chambers of Commerce and Industry (FICCI) aimed at reducing green house gas (GHG) emission in the country.

The initiative, organised by the business chamber in partnership with the Norwegian International Development Agency, NORAD, is timed to counter concerns expressed over the global competitiveness of the Indian industry.

According to FICCI, the market for CDM technology worth 2 billion euros could be created in India in the short-term and more than 10 billion euros in the long term.

Under the Kyoto Protocol, member countries are expected to introduce the greenhouse gas mitigating and energy-efficient technologies to their industries, besides enhancing their economic prosperity for sustainable development.

CDM ensures the curtailment of rise in the GHG emission in the atmosphere, thereby helping to reduce global warming.

Reduction of one tonne of carbon dioxide equivalent, is one Certified Emission Reduction or CER, which can not only be earned by cutting GHGs, but also can be traded as a commodity in the international market.

A market for CERs is taking shape since January 2005 when the EU's emission allowance trading directive came in to force, initiating the European Emission Trading System.

India has the potential to generate 250 million carbon credits, which is worth about 1.5 billion dollars.

On March 31 last, the CDM Executive Board cleared 28 Indian CDM projects, and about 200 projects are in the pipeline; against the award of "Host Country Endorsement" to 264 projects by multi-ministerial national Designated National Authority (DNA) of India, involving 210 million CERs.

Under the National CDM Programme of FICCI, the objectives include creating awareness among the Indian industry, State Governments and other stakeholders on CDM and its benefits; imparting training to the trainers; and showcasing Indian industries, at least five prospective projects for getting them through the whole chain of CDM process till the end of the pipe, that is getting their CERs sold in the international markets.

This would include helping in making the Project Design Document (PDDs) and then applying to the Designated National Authority for host country endorsement letter, getting it validated by a departmental operational entity and finally taking the project through the CDM Executive Board and the issuance of the CERs.

Today's Awareness Seminar at New Delhi is the first in a series of seminars to be held in metros and other industrial cities of India.

So far, the CDM awareness has been largely consultant driven.

FICCI with its extensive network of over 2000 business as its direct members and serving over 2,50,000 business all over India through member-chambers would enable to spread the message on CDM benefits in India, at large.

Simultaneously, the chamber has opened a CDM Facilitation Centre, which would be an interface between the Indian industry and the CDM process to guide the Indian industry. It also plans to launch a user friendly, interactive CDM portal, to provide information about CDM online to interested stakeholders.

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