IDBI BANK FORAYS INTO CARBON CREDIT TRADING ADVISORY

The entry into carbon credit trading is part of IDBI Bank's attempt at refurbishing its image as an investment bank by leveraging the strengths of companies, which had received project funding from it as a development bank. As per the planning commission estimates, India may receive Rs.30,000 crore from carbon credit sales over the next 4 years. Carbon Credit is usually generated by countries in emerging economies and these are used by developed countries' signatories to the Kyoto Protocol. Under the protocol, countries in Europe and UK are committed to bring down the level of green house gases (GHG) by 8 per cent from the present level. The bank will act as an intermediary for arranging buyers and sellers for carbon credit and also help the companies generating such credits for registration as certified credits eligible for trading within the guidelines framed by the United Nations' Kyoto protocol. This is an important opportunity for Indian corporates to get carbon credit and then to offload it to European Corporates.