More than a fourth of the proposed green energy capacity investments planned worldwide have been either stalled or suspended due to lack of funds as a result of the ongoing global financial crisis, according to Remi Erikssen, chief executive officer of DNV Energy, part of Norway-based DNV, a global risk-management solutions provider for various industries. India has emerged as a beneficiary of green energy projects and has 30 per cent of the world’s clean development mechanism (CDM) projects — where companies in developed world can earn carbon credits by investing in green projects in developing countries like India.
“At present, green energy projects are facing severe fund crunch and I reckon the ongoing crisis may deepen in near future for pipeline projects,” said Erikssen, whose company has validated 40 per cent of CDM projects in India. “Projects planned under CDM have also been impacted by the crisis,” he added. Around 1,200 projects are being implemented under the CDM at an estimated investment of Euro 3.6-4 billion. Of this, 360 projects are in India. “Delay in projects mean cost-escalation and they should meet the timelines,” he told Business Standard in Mumbai on Monday.
China accounts for 35 per cent of the carbon credits, followed by India with 24 per cent. India has another 200 projects in the pipeline, and at this point of time it is clear how many of these projects may run into rough weather, said N R Krishnakumar, director of operations, India and West Asia, DNV. CDM is an arrangement under the Kyoto Protocol, which allows industrialised countries to invest in developing countries to reduce emissions in developing countries, as an alternative to more expensive emission reductions in their own countries. It is supervised by an executive board and is under the guidance of the Conference of the Parties (COP/MOP) of the United Nations Framework Convention on Climate Change (UNFCCC). Under CDM, Certified Emission Reductions (CERs) or carbon credits are issued which can be traded by those who earn the credits.
Source : BS