Making Indian companies CDM compatible: towards a green financial strategy. (2017)

• Record Type: Journal Article
• Authors: Abbasi, Ehtesham Husain; Singh, Anshul; Constantinescu, Mihaela; Khan, Asif; Naseem, Mohd
• Is Part Of: International journal of green economics. Volume 11:Number 1(2017)
• Page Start: 62
• Page End: 76
• Publication Date: 2017
• Subjects: CDM compatibility -- clean development mechanism -- carbon finance -- carbon markets -- India -- green financial strategy -- green economics -- climate change -- carbon credit -- carbon emissions; Environmental economics -- Periodicals; Sustainable development -- Periodicals; 333.7
• Languages: English
• ISSNs: 1744-9928

Abstract

Climate change is the most challenging international policy problem the world has ever faced. Implementing new policy and projects can help to reduce global emissions and reveal future opportunities for countries and companies taking part directly or indirectly as financial a strategy. This paper seeks to discuss CDM as a successful business strategy to be adopted by Indian companies to support global environmental initiatives. Secondary data from those companies which are chosen for research are used to carry out a financial analysis of CDM projects. Financial analysis has been done with the help of different ratios, namely carbon ratios, carbon credits/net profit, Carbon Credit/Fixed Assets, Operating exp/Carbon Income. The main sources of Secondary Data are from the websites of Indian Planning Commission (now known as National Institute for Transforming India Aayog or NITI Aayog), Ministry of Environment & Forests, IFC, World Bank, UNFCCC and Annual Reports of companies. Three industrial units sold carbon credit and generated a huge amount of income. There is a significant opportunity awaiting India in carbon financing which is estimated to go up to $100 billion by 2017.