On February 16, 2005, the Kyoto Protocol came into force in approximately 141 countries whereby the participants pledged to cut worldwide greenhouse gas emissions by 5.2% from 1990 by 2012. In order to help to accomplish this objective, the Kyoto Protocol included three market-based methods that allow countries to earn or to buy credits outside their borders:
Clean Development Mechanism (“CDM”): Contemplates credits being earned by investing in emission reduction projects in developing countries
International Emissions Trading: Permits developed countries that have adopted a Kyoto target to buy and sell “Emission Reduction Units” (“ERUs”) amongst themselves.
Joint Implementation: “Certified Emission Reduction” (“CER”) credits can be earned by investing in emission reduction projects in developed countries that have adopted a Kyoto Protocol target for reducing emissions.
“125MW Wind Power project in Karnataka, India” Baldota, when registered, was one of the largest wind energy Project registered with UNFCCC and CERs.
Emission free electricity generation at Harihar, Karnataka, 6.6 MW Wind Power project has been Registered as CDM activity by UNFCCC on 14th April, 2010 Green Energy to Grid at Dhule, Maharashtra, 20 MW Wind Power project has been registered as CDM activity by UNFCCC on 14th March 2011.
30 MW Wind Power project at Surajbari, Gujarat is registered as CDM activity by UNFCCC on 17th January 2011.
Further the company has already signed contracts with various validators for getting VERs for the interim period of various projects from the date of commissioning to the date of registration for CDM. Hence, after verification, company will also get the VER revenue for the units generated from March 2006 to the date of registration with UNFCCC under VCS 2007 guidelines.