The first of its kind initiative to voluntarily
bring down the pollution level in this industrial hub is in a limbo.
With the World Bank backing out of the project to buy carbon credits
from over 50 micro and small enterprises here, the industry is looking
at restarting the project with an independent company.
The industry, which is often blamed for creating
pollution in the region, has been keen on reversing its reputation and
be the first one to start carbon credit trading in the region. To give
it a shape of reality, the forging and furnace industry here inked a
Memorandum of Understanding (MoU) with the World Bank to adopt carbon
credit norms. However, the World Bank laid stringent conditions, which
were not viable for the industry. As a result, the project fell
through. “However, all is not lost and we have now tied up with Mumbai
based TEPL that will buy the carbon credits from the Special Purpose
Vehicle (SPV) (Ludhiana Hand Tools and Forging Envirocare Private
Limited). The industry here would be selling its saved credits to the
SPV,” said SC Ralhan, president of the SPV. He said that the project
has been delayed as they would again have to prepare a detailed
project design development report, before it can be implemented.
According to sources, over fifty furnace units
here have now adopted carbon-credit norms. These units plan to cut
their carbon dioxide emissions by reducing the use of furnace oil.
This oil, which has been the main pollutant, is being replaced by
electricity and commercial LPG kits. Most of the units would make an
upfront investment of Rs 25 lakh to Rs 50 lakh, depending upon the
equipment that each unit would need.
What are carbon credits?
The concept of carbon credits has been accepted
by over 170 countries. It envisages fixing the polluting limit of
every industry. This limit is specified in terms of points. In case,
an industry pollutes more than the limit specified, it needs to buy
more carbon credits. These credits are purchased from a unit which has
a lesser pollution level and thereby had saved carbon points from the
total limits specified. So, the concept encourages and rewards those
polluting less and penalises those who pollute more.
