[Assam] Carbon Credits? TOI

[Ram Sarangapani]

I read this piece of news with some reservations. This Gujarat company is
able to sell 'carbon credits' worth a crore to companies in developed
countries - that have reached their carbon emission limits. All this from
the Kyoto protocol.

Question is, companies in developing countries that will obviously NOT meet
their 'quota' would be able to sell credits to companies in developed
countries - but happens to to the total world-wide emissions?
Doesn't that increase. I don't see any obvious benefits for the Indian skies
in the short run and for the world in the long run.

I wish some knowledgeable netter about flurochemicals and emissions can shed
some light here.

--Ram


Carbon credit sales to fetch firm Rs 1,000 cr<javascript:clippopup(1879470);>
Baiju Kalesh

MUMBAI: Global warming due to greenhouse gases has opened a new avenue for
Indian companies. The savvy can use it to make more money than their annual
turnover.

A recent sale of carbon credits by Gujarat Flurochemicals (known for Inox
multiplexes) has created waves in Europe and Japan, where companies are
desperate to reduce carbon emissions at their factories.

Low-profile Gujarat Flurochemicals, which runs the largest refrigerant plant
in India, has agreed to sell carbon credits worth Rs 1,000 crore over the
next three years to Noble Carbon Credits of Singapore. The deal will rake in
Rs 350 crore for GFL in the first year, sources said. The windfall is nearly
double the company's sales of Rs 182 crore last year and more than thrice
its net profit of Rs 96 crore.

An international pact, known as the Kyoto Protocol, has set emission caps
for developed countries for 2008-2012. The agreement has been signed by 141
countries, notable refusals being US and Australia. Companies in these
countries can either reduce greenhouse emissions to mandated levels or
offset actual emissions by buying carbon credits from companies in
developing countries that manage to reduce carbon dioxide levels.

GFL has promised to sell half of the carbon credits to Noble until 2012 at a
minimum price of $10 a unit. It can buy up to 35% at the market price with a
floor of $10 a unit. GFL will be free to sell the rest in the spot market.
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