Trading in energy efficiency certificates soon …….Namrata Singh | TNN
Mumbai: The wait for trading energy efficiency certificates on a commodity e xch a n g e may be over soon.
A working group, headed by union power secretary Anil Razdan is expected to table a draft report on trading of energy efficiency certificates by mid-November, said sources.
Three months back, the Prime Ministers National Action Plan on Climate Change drew a roadmap that included trading of energy efficiency certificates in the domestic market.
It is presumed that since such certificates would not require the nod of the UNFCCC (United Nations Framework Convention on Climate Change), it will throw up an opportunity for a number of small and medium enterprises (SMEs) to gain from energy efficiency programmes.
The process of getting a project registered under the clean development mechanism programme with the UNFCCC is usually time-consuming and cumbersome for small enterprises. With consultants involved, the process also becomes an expensive proposition for an SME. Many medium and large Indian companies have, however, benefited under the Kyoto protocol by earning carbon credits which are tradeable in the international market.
SMEs would largely benefit from trading of energy efficiency certifications on commodity exchanges in India. Though the steering committee, being overseen by union minister of power Sushil Kumar Shinde, is yet to get into the nitty-gritty of trading of energy efficiency certificates, it is understood that the same would be traded on existing commodity exchanges such as NCDEX or MCX.