Varanasi: Doing business Carbon credits — market mechanisms for minimizing greenhouse gas emissions — generated by various agencies kashi with international companies in the coming years, Varanasi Smart City (VSCL) has taken the initiative to act as an aggregator.
“The membership process Carbon Credit Kashi’s business started with the appointment of a consulting firm,” said VSCL President and Divisional Commissioner Deepak Agrawalmentioning that a proposal to go ahead with the carbon credit scheme was approved in principle after following the presentation given by the consultancy firm – Enking International – on July 26.
“After selecting consultants to assist and hold the organization through a transparent and competitive selection process, VSCL has begun the process of signing a Memorandum of Understanding (MoU) with all stakeholders for this innovative development initiative. aggregation and collective leadership,” said Agrawal.
He added that this initiative should benefit the city not only by creating an eco-friendly environment, but also by creating a sustainable mechanism to generate funds for its future needs.
According to VSCL, the consultancy firm will start shortlisting eligible projects such as solar energy, solid waste management, compost production, water and plants, biogas and other methane production projects, energy efficient lighting, electric vehicles and will advise the city on potential projects to consider for the Carbon Credit.
“On behalf of VSCL,” said Agrawal, “The consultant will also apply for registration of selected projects with accredited agencies such as Verified Carbon Standard (VCS) piloted by VCS Board, US, and coordinate with the designated operational entity ( DOE) which will perform verification and authentication of the carbon credit mechanism for selected projects.”
“The consultants will also help VSCL trade the carbon credits earned on the international market,” he said, adding, “There is no upfront investment from VSCL or any of the agencies. from the city and the consultant will be paid via a revenue share model, as when the same thing happens in the process of selling carbon credits.”
On carbon credit trading, officials said a carbon credit is a tradable permit or certificate that gives the credit holder the right to emit one tonne of carbon dioxide or the equivalent of another greenhouse gas. greenhouse – it is essentially a compensation for the producers of these gases. Carbon credits are market mechanisms for minimizing greenhouse gas emissions, they said, adding that governments or regulatory authorities set caps on greenhouse gas emissions.
Reducing emissions immediately is not proving economically viable for many companies, officials said, adding that they may therefore buy carbon credits to comply with the emissions cap. Organizations that carry out projects that reduce greenhouse gases and the use of renewable energy sources can accumulate carbon credits and sell them to companies on the international market that want to offset their emissions.