Carbon Credits

A permit that allows the holder/buyer to emit one ton of carbon dioxide. Credits are awarded to countries or groups that have reduced their green house gases below their emission quota. These Carbon credits can be traded in the international market at their current market price.

Carbon credits are a part of international emission trading norms. They incentives companies or countries that emit less carbon. The total annual emissions are capped and the market allocates a monetary value to any shortfall through trading. Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price.

India and China are likely to emerge as the biggest sellers and Europe is going to be the biggest buyers of carbon credits.

Last year global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. India is one of the countries that have 'credits' for emitting less carbon. India and China have surplus credit to offer to countries that have a deficit.

Manufacturing units, Alternative Energy projects and firms, Waste disposal units, plantation companies, chemical plants, municipal corporations and any firm which has upgraded its technology or systems so that they produce less CO2 can sell the carbon credits and make money.

In India only MCX sell/buys carbon credits and that to only in futures. European markets allow even day to day spot trading .We help you access both the Indian and European markets.

Carbon Credit Trading

The Exchanges uses the following definitions of "Certified Emission Reduction" (CER) and "CER type" in the ICE Futures Europe Regulations. This will exclude CERs generated by the following:

  • Nuclear facilities;
  • land use, land use change and forestry activities
  • Hydroelectric projects with a generating capacity exceeding 20 MW

CER Type

Means any type of CER other than those determined and notified to Members by the Exchange from time to time. For any CER Type, the Exchange may specify such criteria as it deems appropriate, including without limitation the project type, nature and source of a CER, the scheme and/or mechanism pursuant to which such CER has been issued and the originating or issuing registry.

Certified Emission Reduction" ("CER")

Means a unit issued by the UN Clean Development Mechanism Executive Board pursuant to Article 12 of the Kyoto Protocol and the decisions adopted pursuant to the UNFCCC or the Kyoto Protocol and is equal to one metric tone of carbon dioxide equivalent.

Sun Shakti helps you encash your emission reductions

SunShakti does the following for its clients:

  • Feasibility analysis
  • Preparation of PIN and PDD
  • Getting Host Country Approval
  • Assistance in Validation
  • Getting the project registered with the UN EB and Meth board

We also help our clients

  • Finding the best buyers for their carbon credits
  • Helping sign ERPA(Emissions Reduction Purchase Agreement)
  • Assisting in yearly Verification
  • ERPA Securitization