Carbon credits

137,001 views

Published on

Presentation on the current issue of Carbon Credits, what it is, how is the accounting done, what are its benefits and various other issues.

Published in: Economy & Finance
3 Comments
34 Likes
Statistics
Notes
No Downloads
Views
Total views
137,001
On SlideShare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
2,698
Comments
3
Likes
34
Embeds 0
No embeds

No notes for slide
  • VER
  • If there is income there will be tax
  • Carbon credits

    1. 1. By: DIVINE KAUR CARBON CREDIT
    2. 2. Birth of Carbon Credit Concept of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants
    3. 3. The Major Concern… <ul><li>GLOBAL WARMING </li></ul>
    4. 4. Green house gases leading to Global Warming <ul><li>CO 2 </li></ul><ul><li>Methane </li></ul><ul><li>Nitrous Oxide </li></ul><ul><li>Hydroflourocarbon </li></ul><ul><li>Sulphur Hexaflouride </li></ul><ul><li>Perflourocarbon </li></ul>CO 2 t-e…… one tonne of CO 2 equivalent
    5. 5. Birth of UNFCCC In 1992, Rio Brazil Objective… Green House Gases should be stabilized within a time frame.
    6. 6. The KYOTO PROTOCOL… An agreement signed in December 1997 in Kyoto, Japan
    7. 7. KYOTO PROTOCOL Annexure 1 Non Annexure 1 Developed Developing Under developed
    8. 8. The Kyoto Protocol…… Objective Reduction of Green House Gases emission by developed countries in the The First Commitment Period (2008-2012)
    9. 9. DID YOU KNOW???? WHY
    10. 10. Birth of Carbon Credit Concept of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants
    11. 11. What is Carbon Credit under the KYOTO Protocol… A credit for reducing 1 ton of CO 2 (Green House Gases) from the atmosphere
    12. 12. How to generate Carbon Credits??? CARBON CREDITS
    13. 13. METHANE CO 2 METHANE CO 2 EARN CARBON CREDIT METHANE
    14. 14. USE OF CARBON CREDITS IN EMISSION REDUCTION
    15. 15. REDUCTION NATIONAL MEASURES ADDITIONAL MEASURES THE FLEXIBILITY MECHANISM
    16. 16. FLEXIBILITY MECHANISM Clean development Mechanism Joint implementation Emission trading Project based
    17. 17. Emission Trading Developed country A (needs CC) Developed country B Sell these carbon credits Payment for CC Earns carbon credits called Assigned Amount Units
    18. 18. Joint Implementation Developed country A (needs CC) Developed country B Sets a project Sell carbon credits Earns carbon credits called Emission Reduction Units
    19. 19. Clean Development Mechanism (CDM) Developed country (needs CC) Developing Country Sells carbon credits Sets a project Earns carbon credits called Certified Emission Reduction
    20. 20. Concept of VER’s VER Countries not committed to the protocol Voluntary Emission Reduction OR Verified Emission reduction
    21. 21. What should be the price of carbon???? At present, price of 1 carbon credit is 10 Euro to 15 Euro
    22. 22. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
    23. 23. Market for Carbon Trading…… Currently there are 5 Environmental Exchanges, trading in Carbon Credits POWER NEXT EUROPEAN CLIMATE EXCHANGE
    24. 24. India’s Stance in Carbon Credits
    25. 25. India along with China, lead countries in earning Carbon Credit
    26. 26. <ul><li> India pocketed Rs 1,500 crores in the year 2005 just by selling carbon credits to developed- country clients. </li></ul><ul><li>India has generated 30 million </li></ul><ul><li>Carbon credits & 140 million </li></ul><ul><li>are in pipeline </li></ul>
    27. 27. Some of the Leading companies of India using & selling Carbon Credits… GUJARAT FLOUROCARBONS Ltd.
    28. 28. SRF… . The major beneficiary of reducing GHG gases
    29. 29. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
    30. 30. Concern for The Chartered Accountants ….
    31. 31. ACCOUNTING TREATMENT
    32. 32. Present Accounting treatment….. Treatment under IFRS Treatment under US GAAPS Treatment under AS IAS 20 (Government grants) currently no guidance note available currently no accounting standard available
    33. 33. Tax Treatments <ul><li>Will there be any tax on </li></ul><ul><li>Carbon Credits ?????? </li></ul>If there is income there will be tax…
    34. 34. OR CER Transaction Tax TAX TREATMENT INDIRECT TAX DIRECT TAX Income from CER’s Other Income Business Income Goods Services VAT, etc Service tax
    35. 35. However, NO set Accounting or Tax Treatment has yet been decided
    36. 36. Scope for Chartered Accountants
    37. 37. Other opportunities….. As an auditor…. In audit of Carbon Trading As a Carbon Trading Consultant Carbon Trading Broker
    38. 38. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
    39. 39. What after 2012… End of Commitment Period??? NOT SUCCESSFUL THE COPENHAGEN CONFERENCE
    40. 40. Thank You……

    ×