A surge in renewable energy investments could drive a tripling of U.N.-backed carbon offsets issued to emission reduction projects in India by end-2012, a report said on Thursday.
And a jump in issuance of carbon credits to renewable energy projects alone could be worth Rs 4,000 crore ($890 million) by end-2012, leading Indian research house CRISIL said in the study.
The study said ambitious renewable energy policies will lead to greater wind and biomass investments and lure more project developers to opt for carbon offsets as an additional sweetener. But the positive picture was also based on a new climate pact being agreed to underpin the global carbon market.
Issuance to renewable projects would rise to 76 million by end-2012 from 13.5 million in Nov 2009, the report said, helping India remain the world’s number two source of CERs after China.
“The growth in CER issuance will be driven by capacity additions in the renewable energy sector, and by the eligibility of more renewable energy projects to issue CERs,” the report says. Read more here and here.