IDBI Bank Joins Hand With Sumitomo For Carbon Credits

Chennai: IDBI Bank has joined hands with Sumitomo of Japan for trading in carbon credits. IFC and Sumitomo would help find buyers in various geographies. Earlier, in October 2006, IDBI Bank had joined hands with MITCON Consultancy Services Ltd of Pune. MITCON has expertise in project identification and registration of clean development mechanism (CDM) projects with the United Nations Framework Convention on Climate Change. Under this arrangement, companies could get single-point assistance pertaining to origination and implementation of CDM projects, as well as advisory services on generation and trading of carbon emission reductions (CERs). And now recently, it has sewn up another arrangement with Sumitomo. While the sale of CERs will give companies additional revenue, IDBI Bank stands to gain in the form of additional fee income. Each tonne of CO2 emission reduction (or its equivalent) can bring in approximately Rs 200-250 as CDM revenue. Companies dealing with carbon credits, such as EcoSecurities, have anticipated that Indian companies will get $40-$50 million annually.