World Bank to buy carbon credits to aid building material industry

 
Last Updated: Saturday 04 July 2015

as the trustee of the Community Development Carbon Fund, the World Bank has agreed to buy carbon credits from two Indian companies ostensibly to promote projects with better technologies in the building material industry. The construction sector in India is considered one of the most carbon intensive sectors representing about 17 per cent of India's carbon dioxide emissions.

One of the projects -- Vertical Shaft Brick Kiln (vsbk) technology project -- aims to improve the thermal performance of the brick-manufacturing units in select clusters, especially those in Chhattisgarh, Madhya Pradesh, Rajasthan, Orissa, Jharkhand, Uttar Pradesh and West Bengal.The Technology and Action for Rural Advancement, the social enterprise arm of the New Delhi-based ngo Development Alternatives, intends to set up about 126 vsbk plants within two to three years with the help of entrepreneurs. These projects are expected to reduce nearly 4,00,000 tonnes of greenhouse gas emissions. It is this reduction that will be purchased by the carbon fund over the next 10 years. Every tonne of emission reduction has a monetary value and can be traded in the global market under the clean development mechanism -- a financial mechanism of the Kyoto Protocol. But as of now, the price has not been disclosed.

The other initiative -- FaL-G project -- promoted by the Hyderabad-based Eco-carbon intends to replace environmentally damaging burnt clay building bricks with fly ash bricks. Under the aegis of this project, about 100 micro-industrial plants will be set up in Tamil Nadu, Karnataka, Orissa and Uttar Pradesh to manufacture fly ash bricks using the FaL-G technology. The carbon fund will purchase 6,00,000 tonnes of greenhouse gas reductions over a 10-year period from this project too.

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