Carbon credits: Punjab plans to set up consultancy

The process of getting registered for carbon credits is expensive,but the state government consultancy would charge much less than the private counterparts to attract industrialists towards energy-efficient methods. Asserting that they would keep special focus on small-scale industry,Dr Jerath says,“If project document is impressive,half the battle is won.”

The work on the consultancy has begun,and the PSCST has issued an advertisement for hiring employees,she says. The staff would go to the field and study the project’s emission scale. The PDD will then be sent to the national executive board of the Union Environment Ministry. “If the ministry wishes some changes in the project to make it eligible,we will help the company do that,” she adds.

After the board approves the report,an evaluator will study the project and tally the emissions balance-sheet with the PDD. If all is in place,the project is registered and sent to the United Nations Framework Convention on Climate Change (UNFCCC) and granted carbon credits as per the Clean Development Mechanism (CDM) of the Kyoto Protocol.

Meanwhile,Punjab Energy Development Agency (PEDA),which is the nodal agency for carbon credits,is offering free guidance to the industry. PEDA CEO T P S Sidhu says,“We have written letters to all the departments of Punjab to get in touch with us if they have any project that can help them earn credits. We are trying to gravitate the industry towards carbon credits with our slogan,‘set up a project and earn money’. Besides,we have been holding seminars and workshops for the industry and government departments to demystify the concept.”

Echoing Dr Jerath,Sidhu says becoming eligible for trading carbon credits is a high-ticket process,but long-term profits makes it worth every penny spent. He says now it has become mandatory for all the industry to have carbon credits built-in in the project.

PEDA is showing the way with its biomethanation plant in Haebowal in Ludhiana. “The project has been evaluated by a US evaluator,and granted 53,000 VER (voluntary emission reduction) credits. At present,we are not cashing in on the credits,as we expect the rates to go up by March,” says Sidhu.

Sources say it was important that the government comes up with a consultancy as some of the private consultants secure their share in the credits and indulge in arm-twisting. They say sometimes an industry is forced to hire a consultant from the country which is providing them machinery or helping in setting up the plant.

However,quality service is what matter to the industrialists. B S Jangra,head of the power division of Malwa Power Pvt Ltd,Muktsar,which has secured 48,000 certified emission reduction (CER) credits,says,“We are happy to know that the government is opening a consultancy,and we would prefer it over the private firms. But,all we want is a superior service.”

CER and VER

The clean development mechanism (CDM) allows developing countries to earn certified emission reduction (CER) credits,each of which is equivalent to one tonne of CO2. These CERs can be traded under the Kyoto Protocol. A VER (voluntary emission reduction) is also tradable,and the only difference is that while CERs are generated as per standards of the Kyoto Protocol and UNFCCC,VERs are independently verified by a third party,which provide written assurance of the integrity of the emission reductions.