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BL reported that Essar Steel has entered into a deal with Denmark based Nordjysk Elhandel for selling carbon credits that will earn the Indian firm about INR 300 crore over a period of 10 years. Essar Steel from India would get money for employing energy efficient and green technologies in their businesses through this transaction.
The agreement between Essar and Nordjysk was signed last week and was facilitated by the Danish Embassy.
Under the agreement, Essar Steel will sell carbon credits generated at three of its projects at the Hazira steel plant in Gujarat to the Danish firm. The three projects together are expected to generate about 500,000 CERs per annum for the next 10 years while the rate is pegged at INR 600 for each credit.
Mr Sudhir Chavan VP of Essar Sttel said that “It is our first step to make the case of carbon credits successful. We will earn about INR 300 crore in a period of 10 years depending on the rate of a CER in the market.”
Mr Chavan said that Clean Development Mechanism is an arrangement under the Kyoto Protocol that allows countries to reduce greenhouse gas emission by allowing companies in developing nations to sell carbon credits to developed countries and earn money.