Market Research Report: Carbon Market In India 2010


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Increasing concentration of carbon dioxide in the atmosphere has increased the global average temperature (150C) leading to global warming. To fight this global warming, Kyoto Protocol was formed under the UNFCCC. It coined three mechanisms to reduce carbon emissions. Clean Development Mechanism (CDM) is well accepted in India and is expected to drive the Indian carbon market. The Carbon Market in India is expected to generate 573 mn Certified Emission Reduction (CER) or Carbon Credit by the year 2012 and will grow rapidly in the future based on CDM projects as the demand for CER’s will increase form Annex 1 countries.

The report begins with an introduction to global warming and its effect on our environment. This is followed by an overview of the initiatives being taken to fight climate change like Kyoto Protocol through various mechanisms and other Voluntary Emission Reduction schemes.

It further discusses the global carbon market and provides the market size and growth. It also introduces Kyoto Mechanism globally i.e. Joint Implementation Mechanism (JI), CDM initiatives and International Emission Trading (IET) indicating some especially dedicated environmental trading exchanges around the world. Report also discusses the carbon market in India including the various CDM projects, its approval process from National CDM Authority and International Emission Trading (IET). This is followed by an introduction to the Indian trading exchange where Carbon Credit is traded, namely Multi Commodity Exchange and National Commodity & Derivatives Exchange.

The report also includes profiles of both Indian and foreign consultants (based on their Registered Projects) actively involved in the CDM projects in India. The section contains a snapshot of their services provided, ktCO2e issued by 2010 and 2020, investments, power generation installed in MW by 2012 and a list of the countries who have bought CER’s through these consultants. The report concludes with the steps discussed during the Copenhagen Accord that are expected to be implemented after the expiry of the Kyoto Protocol in 2012.

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Market Research Report: Carbon Market In India 2010

  1. 1. Carbon Market - 2010 May 2010
  2. 2. Executive Summary Global warming is the increase in the average temperature (M C) of earth’s surface due to o increasing concentration of CO2 in the atmosphere To fight climate change, Kyoto Protocol was formed under the UNFCCC with an objective to Global reduce carbon emission by an average of A% below 19__ level between 20__-20__ Warming and LE Three mechanism were adopted to reduce emissions initiative – Clean Development Mechanism (CDM) P – Joint Implementation – International Emission Trading M Carbon Market A Global emissions trading is expected to achieve a yearly turnover of INR A tr by 20__ S – EU Emissions Trading will be the largest carbon market, accounting for B % of all transactions by volume India adopted CDM and is expected to generated C mn CER by the year 20__ – CDM projects are typically handled by consultants from implementation and issuance of carbon credit Major Domestic Consultants Major Foreign Consultants Company 1 Company 2 Company 3 Company X Company Y Company Z Carbon market encourages developed countries to avoid the reduction of their own GHG’s Issues and emissions and transfer their responsibilities to developing countries Road Ahead Copenhagen accord was organized keeping in mind the expiry of Kyoto in 20__ – Annex 1 country had submitted their emission targets for 20__ along with the acceptance of formation of “Copenhagen Green Fund” CARBON MARKET IN INDIA 2010.PPT 2
  3. 3. •Global Warming •Global Initiatives Kyoto Protocol Voluntary Market •Carbon Market – Global •Carbon Market – India CDM Projects Carbon Trading Carbon Consulting Market •Issues and Challenges •Road Ahead •Appendix CARBON MARKET IN INDIA 2010.PPT 3
  4. 4. Increasing greenhouse gas emission in the atmosphere is leading to global warming Global warming is the increase in the average temperature of Earth's near-surface, air and oceans • Since 18__, fossil fuel combustion has released about A Giga tones of carbon (GtC) of which B GtC is left in atmosphere, while rest is absorbed by vegetation and oceans LE Cause • Change in land, converting forests to urban centers (deforestation), has altered the climate system MP • Variation in solar output (from the sun) and CO2 emitted by volcanic eruption has also lead to increase in CO2 concentration in the atmosphere Outcome SA • Atmospheric concentrations of CO2 (D ppm) and CH4 (E ppb) in 20__ exceeded far beyond the natural range over the last F mn years • Contribution of India to the cumulative global CO2 emissions in 20__ was G mn mt • Global Greenhouse gas (GHG) emissions will increase by H% to J% (CO2-eq) between 20__ and 20__ • Temperature is expected to increase by about K °C per decade Possible L % of species will extinct if temperature exceeds M °C. Effects • Global sea level rise has increased from N mm per year in the 19__ to P mm per year today (20__) • These irregularities in the climate will have a detrimental effect on crop cultivation affecting mankind at large CARBON MARKET IN INDIA 2010.PPT 4
  5. 5. UNFCCC has taken various steps towards drafting and implementation of the Kyoto Protocol Kyoto VER To tackle the problem of global warming, United Nations Framework Convention on Climate Change (UNFCCC or FCCC) - an international environmental treaty - was formed at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro from A to B June 19__ UNFCCC came Marrakesh Accords Stem Report Bali road map Copenhagen into force for Kyoto Published adopted Denmark Mar -- Dec -- Nov -- Feb -- Oct -- Nov -- Dec -- Apr -- Dec -- Post -- Kyoto Protocol Adopted MPLE First commitment of Kyoto Protocol SA 4th PCC Assessment Report 1st round of Bali climate change New international Agreement Kyoto Protocol framed by UNFCCC has a tenure only for the period 20__- 20__ Kyoto Protocol framed by UNFCCC has a tenure only for the period 20__- 20__ CARBON MARKET IN INDIA 2010.PPT 5
  6. 6. India is the largest developer of CDM projects and provider of CER to Annex 1 countries after China CDM Authority Trading Players Indian Carbon market Projects under CDM • India is second largest provider of CDM project and Status Number kCERs 2012 kCERs CERs to Annex 1 countries Validation E F G India generated A mn CER by the year 20__ LE Request Total inflow by selling of CER is INR B bn by 20__ H I J Registration • Out of total CDM project in India C% are small and MP rest are large CDM project • India is also in trading of Carbon product through Registered Total K N L O M P A India's Multi Commodity Exchange Start Request Registration S It have share of at D % in Global market by FY__ CDM Projects in India (by type) Type 1 Q Days CDM projects in India (by state) R Days PP AA VV State 1 BB Type2 State 2 Type 3 QQ UU State 3 Type 4 CC State 4 Type 5 TT State 5 FF Type 6 DD State 6 RR SS State 7 EE CARBON MARKET IN INDIA 2010.PPT 6
  7. 7. Major Indian Consultants (1/6) CDM Authority Trading Players Projects Investment ktCO2e Consultant Overview Credit Buyer (MWe) (USD mn) 2012 2020 Company 1 • Analyzes latest carbon market M N • Country 1 O P trends, price trends, price drivers • Country 2 and market potential beyond 20_ Company 2 • Focus on the CDM projects Q R • Country 3 S T • Provides service to companies in • Country 4 industrialized countries with an end-to-end solution from identifying and registering climate change projects SAMPLE CARBON MARKET IN INDIA 2010.PPT 7
  8. 8. Thank you for the attention The Carbon Market - India report is a special feature from Research on India For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 96191 00122 Phone: +91 98303 09715 E-Mail: E-Mail: Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. CARBON MARKET IN INDIA 2010.PPT 8