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

1. By: DIVINE KAUR CARBON CREDIT

2. Birth of Carbon Credit Concept of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants

5. Birth of UNFCCC In 1992, Rio Brazil Objective… Green House Gases should be stabilized within a time frame.

6. The KYOTO PROTOCOL… An agreement signed in December 1997 in Kyoto, Japan

7. KYOTO PROTOCOL Annexure 1 Non Annexure 1 Developed Developing Under developed

8. The Kyoto Protocol…… Objective Reduction of Green House Gases emission by developed countries in the The First Commitment Period (2008-2012)

9. DID YOU KNOW???? WHY

10. Birth of Carbon Credit Concept of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants

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. How to generate Carbon Credits??? CARBON CREDITS

13. METHANE CO 2 METHANE CO 2 EARN CARBON CREDIT METHANE

14. USE OF CARBON CREDITS IN EMISSION REDUCTION

15. REDUCTION NATIONAL MEASURES ADDITIONAL MEASURES THE FLEXIBILITY MECHANISM

16. FLEXIBILITY MECHANISM Clean development Mechanism Joint implementation Emission trading Project based

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. Joint Implementation Developed country A (needs CC) Developed country B Sets a project Sell carbon credits Earns carbon credits called Emission Reduction Units

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. Concept of VER’s VER Countries not committed to the protocol Voluntary Emission Reduction OR Verified Emission reduction

21. What should be the price of carbon???? At present, price of 1 carbon credit is 10 Euro to 15 Euro

22. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit

23. Market for Carbon Trading…… Currently there are 5 Environmental Exchanges, trading in Carbon Credits POWER NEXT EUROPEAN CLIMATE EXCHANGE

24. India’s Stance in Carbon Credits

25. India along with China, lead countries in earning Carbon Credit

27. Some of the Leading companies of India using & selling Carbon Credits… GUJARAT FLOUROCARBONS Ltd.

28. SRF… . The major beneficiary of reducing GHG gases

29. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit

30. Concern for The Chartered Accountants ….

31. ACCOUNTING TREATMENT

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

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. However, NO set Accounting or Tax Treatment has yet been decided

36. Scope for Chartered Accountants

37. Other opportunities….. As an auditor…. In audit of Carbon Trading As a Carbon Trading Consultant Carbon Trading Broker

38. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit

39. What after 2012… End of Commitment Period??? NOT SUCCESSFUL THE COPENHAGEN CONFERENCE

40. Thank You……