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Mumbai The closure of the 25-year-old dumping ground at Gorai creek in Borivli has earned the Brihanmumbai Municipal Corporation Rs 27 crore by trade of an estimated 31,033 tonnes of carbon credits a year. The Asian Development Bank has agreed to purchase the carbon credits from the civic body at a cost of 12 Euros per carbon credit till 2014 and has made the payment for 50 per cent.
The standing committee on Wednesday gave its approval to enter into an agreement with the ADB to trade the Certified Emission Reductions a term used for the units of carbon project after it is validated by one of the United Nations Framework Convention on Climate Change (UNFCC)-approved mechanisms. Though the ADB has made payment for 50 per cent of the CERs, the rest will be paid as per the existing market rate whenever the trading takes place.
One CER is equivalent to one tonne of carbon dioxide reduced. Under the Kyoto Protocol, governments and companies in the European Union can use these credits to offset their carbon emissions and meet part of their reduction targets. Carbon credits are generated mainly in the developing countries because of the lower project cost. India has cornered nearly 43 per cent of the carbon credits (CERS) issued so far by the CDM executive board.
Officials said they had received offers for the exchange of 9.35 Euros/CER.