Treat carbon credit revenue as export earnings: Ficci

New Delhi, Dec 3 (UNI) As a measure to stabilise the green house gas emission by industries in the country, carbon credit revenue should be treated as export earnings, suggested an industry body.

FICCI-Climate Change Task Force (FICCI-CCTF) Chairman Prodipto Ghosh said, ''one of the important macro-level policy recommendation is to treat revenue earned from carbon credits as export earnings.'' Carbon credits is the capping of total annual emissions of greenhouse gases by a country or a industry and letting the market assign a monetary value to any shortfall through trading. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price.

Credits can be used to finance carbon reduction schemes between trading partners and around the world as well. The global carbon market grew in value to over 30 billion dollars in 2006.

The 22-member FICCI-CCTF has been formed to deliberate on policy, regulatory and programmatic issues pertaining to climate change and the Clean Development Mechanism (CDM).

However on the issue of carbon tax, levied on energy sources emitting carbon dioxide in the atmosphere, Ficci's General Secretary Amit Mitra said, ''we are against this proposal as it will lead to a sharp decline in the output of energy intensive sectors, thereby leading to overall decline in the GDP growth.'' We are already going for voluntary assertions and developed economies like the US, the EU need to look into their own emmission levels before pointing a finger on us, Mr Mitra added.

In comparison with India, the ratio of emmission levels is 1:20, 1:15 and 1:13 with the US, the EU and Japan respectively, he pointed.

Speaking at the release of the report by the task force, Dr Ghosh, who is also a member of the Prime Minister's council on Climate Change, told reporters that there are about 40 acts and policies along with 60 programmes and schemes across sectors, which work for greenhouse gas emmissions reduction, energy efficiency, renewable energy and afforestation.

In spite of such an elaborate regulatory framework addressing climate change, the country needs a comprehensive National Climate Change Policy, Mr Ghosh added.

The other recommendations by the task force include promotion of Energy Service Companies (ESCOs), making energy audits mandatory for specific industrial sectors, giving preferences to energy-efficient appliances in the government's procurement programmes, promotion of Indian operational entities and accredation of CDM consultants in the country.

UNI