The break-up

Of the 333 projects approved at the domestic level, 106 involve energy efficiency (projects where green house gas reductions are achieved by adopting measures that improve energy efficiency), 17 include fuel switching (projects where companies switch to cleaner fuels), 23 are based on industrial process changes, eight are municipal solid waste management, 82 are renewable energy (including solar and hydroelectric projects) and 97 are biomass-based renewable energy projects.

New Delhi , Aug. 4

Kyoto Protocol's clean development mechanism (CDM) has facilitated investments of over Rs 19,623 crore in cleaner projects in the country.

"Till July 31, 333 projects have been given the host country approval from CDM Authority in the Environment Ministry," Dr Prodipto Ghosh, Secretary, Ministry of Environment and Forests, told Business Line.

The next level of approval has to come from UN. As of now, about 79 Indian projects have been registered at the UNFCCC (United Nations Framework Convention of Climate Change).

Protocol firmed up till 2012

"Our recent calculations, which were done when 318 projects had been cleared, show that these projects may result in generation of 245 million certified emission reductions (CERs) till 2012," Dr Ghosh said adding that an investment of Rs 19,623 crore has gone into the projects. The Kyoto Protocol mechanism has been firmed up till 2012. Each CER (called carbon credit in common parlance) is equivalent to reduced emission of one tonne equivalent of carbon dioxide.

Off the 333 projects approved at the domestic level, 106 involve energy efficiency (projects where green house gas reductions are achieved by adopting measures that improve energy efficiency), 17 include fuel switching (projects where companies switch to cleaner fuels), 23 are based on industrial process changes, eight are municipal solid waste management, 82 are renewable energy (including solar and hydroelectric projects) and 97 are biomass-based renewable energy projects. Referring to the increasing number of companies signing up for CDM, Dr Ghosh said, "This is one of the fastest growing areas in the country. In absolute terms, investments into cleaner projects are larger than that in biotech firms — excluding pharmaceuticals."

With this mechanism, companies are realising that environmentally responsible behaviour can yield (financial) results, he added.

At the domestic level of clearance, project owners submit their project details and indicate the extent of CERs that their activities are likely to generate — subject to further validations at the UN level.

The exact quantity of CERs that a project can generate is finalised only after its validation and approval at the UNFCCC. The CERs can be sold to buyers - from developed countries that are signatories to the Kyoto Protocol - who have to meet green house gas reduction targets.