15 January 2008 15:10 [Source: ICIS news]
MUMBAI (ICIS news)--The global clean development mechanism (CDM) market is expected to almost double in value to $10bn/year by 2012 as more companies adopt environmentally friendly technologies and earn from it, an Indian banking official said.
"India is the leader in the carbon credits market, as it has registered 35% of CDM projects across the world," Yashpal Gupta, deputy general manager of the Industrial Development Bank of India (IDBI) said in his presentation at the country's Specialty Chemical Conference late on Monday.
By volume the nation stood second after China, he added.
However, the Indian carbon market was largely driven by small and medium enterprises and about 62% of the CDM projects in the country were small in scale, he said.
The CDM market was expected to grow to $100bn/year by 2050, if the global community agreed to reduce greenhouse gases by 50%, he added.
According to the Kyoto Protocol, developed countries had taken a binding obligation to reduce greenhouse gases by an average of 5.2% during 2008-2012 over 1990 levels, he added. Although the US has not signed the binding agreement.
CDM is one of the mechanisms introduced in the Kyoto Protocol to assist countries in achieving their emission reduction targets.?xml:namespace>
The two-day conference runs from 14-15 January and is organised by the Federation of Indian Chambers of Commerce and Industry.
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