Financial Daily from THE HINDU group of publications
Thursday, Oct 13, 2005
Financial Daily from THE HINDU group of publications Thursday, Oct 13, 2005 |
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Environment Corporate - Environment 20 sugar, cement, paper projects likely to trade carbon — Methodologies for fly-ash mixing, power generation from bio-residues cleared Mamuni Das
New Delhi , Oct. 12 TWENTY Indian projects from the sugar, cement and paper and pulp sectors, seeking to trade carbon, are likely to be registered soon at the United Nations Framework Convention on Climate Change (UNFCCC) with the Clean Development Mechanism (CDM) Executive Board recently approving methodologies for fly-ash mixing during the cement manufacturing process, and power generation from industrial bio-residues. Subsequently, these approvals will benefit a much larger spectrum of cement, paper and sugar projects that follow similar methodologies. However, 20 projects, which are already implemented, were racing against a December 31, 2005 deadline set by the Kyoto Protocol. If registered after December 31, 2005, they will be able to trade those CERs (certified emissions reductions) that will be generated "after" the date of registration and cannot liquidate the value of green house gas (GHG) reductions that happened before it, according to a UNFCCC rule. Each CER stands for one tonne of carbon dioxide reduction and is tradable globally. The beneficiaries include projects of Balrampur Chini, Triveni, Ugar, Mawana in the sugar sector, ACC, Birla, Gujarat Ambuja, Lafarge in the cement sector and ITC in the paper sector since most of their projects are in the process of getting validated in the UNFCCC and are likely to be registered before December 31, said sources. This is important since most of these projects are already implemented and if registered before December 31, they can accumulate CERs due to the green house gas reductions that were generated before the year-end. "Many projects from the sugar, paper and cement sectors that have been awaiting clearance are likely to be registered at the UNFCCC before December 31, 2005 with the CDM Executive Board approving the methodology for grid connected electricity generation from biomass residues and increasing the fly-ash blend in cement production," said Dr Ram Babu, Associate Director, PricewaterhouseCoopers. He said, "As many as 20 projects from these three sectors could be registered before the year-end." According to Mr Robert Taylor, Director, Agrinergy Ltd, "Several implemented projects will benefit since they can trade those CERs that were generated before December 31, 2005." Agrinergy, UK-based CDM consultancy, has developed the project design document and baseline study, monitoring and verification plan of ACC New Wadi Blended Cement Project that has been approved by the panel. Also approved is Birla Corporation's CDM Project for optimal use of clinker in cement manufacturing. "This opens a big scope for Indian companies in the sugar and cement sector. Each 20 mega watt power plant from the sugar sector could generate roughly 90,000 CERs per annum. For instance, with an estimated 3,500-mega watt capacity potential from the sugar industry through cogeneration, roughly 10 million CERs could be generated per annum from the country," said Mr Taylor. Registration is the formal acceptance of a validated project by the CDM Executive Board as a CDM project activity. It is the prerequisite for verification, certification and CER recognition.
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