SBI eyes 25m carbon credit from cow dung
- SBI eyes 25m carbon credit from cow dung
Posted by: "karmayog.org - sheetal" info@...
Wed May 5, 2010 11:11 pm (PDT)
SBI eyes 25m carbon credit from cow dung.......Natalie Obiko Pearson. Mumbai
To lend Rs 17 crore to 20,000 farmers for buying fuel-saving equipment
State Bank of India, the nation's largest, plans to help farmers buy fuel-saving equipment that could generate as many as 25 million carbon credits, potentially one of the country's biggest offset projects to date.
State Bank has agreed to lend Rs 17 crore to 20,000 farmers for plants that convert cow dung and kitchen waste into cooking gas, reducing their need to burn fossil fuels, said I R Reddy, deputy general manager.
"We aim to expand that to 500,000 farmers over the next three years," Reddy said in a phone interview.
Soot is believed to be the biggest contributor to global warming after carbon dioxide, according to the Worldwatch Institute, a Washington-based independent research organisation.
About 60% of households in India burn wood, manure and crop waste for cooking and heating, according to the environment ministry.
The farmers will receive income from selling UN-certified emission reduction credits generated by the project to pay back their loans, said Vishwajit Dahanukar, managing director of Mumbai-based Managing Emissions, which arranged the deal.
The project may earn as many as 2.5 million credits annually for 10 years, said Dahanukar. That would place it among India's top five generators of Certified Emission Reduction credits in the period to 2020, according to data compiled by Bloomberg.
The United Nations awards credits for reducing heat-trapping gases blamed by scientists for climate change that are traded under the Clean Development Mechanism, the world's second-biggest greenhouse gas market. UN CER credits traded at 13 euros on the European Climate Exchange at 9:09 am London time.
The State Bank project is under validation by the United Nations Framework Convention on Climate Change, the last step before approval, according to Managing Emissions, which filed the application for credits. Bloomberg
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