The Hindu : Business : Clean energy becoming profitable

Online edition of India's National Newspaper
Friday, Oct 15, 2004

Business

Business

Clean energy becoming profitable

By Our Staff Correspondent

NEW DELHI, OCT. 14. The recent decision by the Russian Government to ratify the Kyoto Protocol spells good news for project developers in India and other developing countries who are investing in renewable energy, energy efficiency and municipal waste to energy projects.

Speaking at a discussion on `Opportunities, challenges and issues in the clean development mechanism (CDM) market', organised by Senergy Global, Ken Newcombe, senior manager of the World Bank's Carbon Funds, said there was an unlimited capacity to sell in the CDM market but time was running out. "The Russian ratification would bring the Kyoto Protocol into force enabling such projects to attract additional revenue from the sales of carbon emission reductions (CERs) through the CDM," he said.

Mr. Newcombe, who has pioneered the global market in CERs through the World Bank's Prototype Carbon Fund, was sharing his CER transactional experience with Indian investors in renewable energy and energy efficiency projects.

He said the CER market was doubling every year, and their prices are also inching up.

Jay Mathur, President of Senergy Global, India's first CER trading company, pointed out that India was already the largest potential supplier of the CERs in the global carbon market.

Over two-dozen projects have received Government approval, which is the highest number approved by any country in the world. He highlighted the necessity of bundling CDM projects together so as to offer packages of large volume of CERs.

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