‘Meltdown forcing rich nations to shelve anti-greenhouse projects’March 13th, 2009 - 8:56 pm ICT by IANS
New Delhi, March 13 (IANS) The global financial crisis is forcing developed countries to put off plans to build projects to curb greenhouse gases emissions in developing nations, an industry lobby report said Friday.
The study by the Associated Chambers of Commerce and Industry (Assocham) said this would affect many renewable energy projects in countries like India and China which need huge investments for their implementation.
“There has been only 28 percent growth in project activities registered by the Clean Development Mechanism (CDM) executive board in six months from 1,109 registered projects in July 2008 to 1,421 registered projects in February 2009,” Assocham said.
The CDM is an arrangement under the Kyoto Protocol that allows industrialised countries to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries.
The global carbon market that grew 105 percent in 2007 and 84 percent in 2008 has slowed down to 33 percent this year.
“Prior to the crisis, developers of CDM projects tapped the benefits of the growing market for carbon credits to finance part of their project costs. However, in the present scenario, financing seems to be a mammoth task, which might affect projects,” said Assocham secretary general D.S. Rawat.
Big greenhouse emitters like the US and other industrialised countries that buy huge carbon permits from developing countries are now not able to set aside huge amount for the projects, it added.
According to the Kyoto Protocol, the developed countries have to reduce greenhouse emissions to an average of 5.2 percent below the 1990 level between 2008 and 2012.
Tags: assocham, carbon credits, cdm projects, chambers of commerce, chambers of commerce and industry, clean development mechanism, developing countries, developing nations, emission reductions, emitters, global carbon, global financial crisis, greenhouse emissions, greenhouse gases emissions, greenhouse projects, industrialised countries, kyoto protocol, mammoth task, meltdown, renewable energy projects