Financial Soultions: India announces plans to begin trading in Energy Efficiency Certificates.

Nov. 12, 2009 - PRLog -- Financial Soultions has been informed that the Indian government has, in what is seen as an attempt by another developing nation to put added pressure on industrialized countries to commit to binding agreement in Copenhagen in December, announced ambitious CO2 emission cuts, including higher efficiency standards and incentives encouraging  cleaner industrial practices.

India has previously said that it would oppose demands for accepting mandatory emission targets form the Copenhagen climate talks as long as developed nations are not bound by strict climate change policies themselves. This latest initiative is widely seen as adding impetus to the stance of many developing nations, including Brazil who has also recently announced its own voluntary domestic emissions cap and trade policy.

Financial Soultions has seen a marked move by a growing number of governments including Australia and many Asian nations to enter into a carbon credit trading system, and while it may at this stage only be on a domestic level, it is indicative that the majority of global nations see this as the most likely option for a significant cut in emissions and realize that it is only a matter of time before a global version of the EU’s carbon credit trading system becomes a reality.

The Indian government intends tabling new legislation in parliament during its next session, starting in mid November, which would set energy consumption standards for companies across 9 sectors including the giant emitters, steel and cement manufacturing and power generation, with legislators working out the optimal energy consumption levels for 714 energy-intensive companies.

The proposed legislation would focus more on energy efficiency than reducing carbon emissions. The industries would need to meet the energy standards and those which fail to do so would be able to purchase energy efficiency certificates from the industries which have met the set standards, with the certificates being valid for 1 year. The principals behind this plan are similar to those of carbon trading, Financial Soultions understands. India is a chief recipient of the Clean Development Mechanism earning millions of dollars for its clean energy projects and is now seeking to replicate the scheme nationally.

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