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Rajasthan State Mines and Minerals Corporation first PSU to sell its carbon credits to Sweden

According to reports, Rajasthan State Mines and Minerals Corporation (RSMML) has become the first public sector unit (PSU) project in India to be selected by the Swedish government for purchase of carbon credits on long term basis up to 2019.

A team of Swedish Energy Agency on behalf of environment ministry, government of Sweden visited the wind farms in Jaisalmer recently and carried out due diligence followed by a detailed discussion with Ajitabh Sharma, managing director, RSMML. It ended in signing of an agreement.

Ajitabh Sharma said, “As per the agreement, RSMML has assured to provide 4,30,000 carbon credits to government of Sweden from now till December 2018. There will be a reduction of about 4 lakh tonnes of CO2 emission in the atmosphere to protect global warming by the activities of these projects of RSMML. In turn, the government of Sweden has agreed to provide a fixed price of 4.8 euro per Carbon Emission Reduction (CER) being delivered to them till December 31, 2012.”

Swedish Energy Agency, a state nodal agency of government of Sweden, is managing the Clean Development Mechanism (CDM) programme of government of Sweden to support international climate project by purchasing emission reductions and is directly involved in 40 bilateral projects in China, Malaysia, Thailand, Vietnam, Brazil, Tanzania, Mauritius, Romania, Estonia etc. The total budget for the programme is approximately 185 million euros.

Sharma said, “Rapid industrialization since the last century has led to an alarming rise in green house gas emission. The resultant climate change manifests primarily through an increased frequency of extreme events. According to Kyoto Protocol under the Clean Development Mechanism (CDM), each ton of carbon dioxide saved will translate into CER credit, which can be traded with a willing company of a developed nation, which has the mandate to reduce the emission.”

The MD also said, “RSMML has taken up a number of initiatives to secure sustainable eco-friendly operations. Under its Green Power Project for wind power development in Rajasthan, the company has already installed wind farms of 106.3 MW (till March 2010) in Jaisalmer. RSMML is producing 1700 lakh units of electricity every year from wind farms without any pollution. If this quantum of electricity would have been produced by conventional thermal power plants then approximately 1,36,000 tonnes of carbon dioxide would have been emitted in the atmosphere every year.”

Use of roller press technology and other methods have been adopted to achieve substantial saving of power at the industrial beneficiation plant at Jhamarkotra.

In the previous years RSMML had sold its carbon emissions to various international buyers of Britain, Netherlands, Asia Carbon Exchange, European Carbon Fund of France, Mitsubishi Japan, Energy Agency Rhodesia and Australia etc. Besides, traditional CERs of UNFCCC, RSMML was also able to sell its carbon emission of pre-registration period of UNFCCC in voluntary carbon market through APX registry of Washington DC.

The company had sent its credentials to the government of Sweden for purchase of CERs from their specially allocated Asia Pacific carbon fund and future carbon fund for period after 2012. After detailed due diligence and looking at the credentials and works of RSMML related to corporate social responsibilities, the government of Sweden has selected two registered wind farm projects for purchase of CERs from their special carbon funds.

The letter of approval for both the projects of RSMML were signed on October 24 by Erik Brandma, director general of Swedish Energy Agency on behalf of government of Sweden.

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