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Empowering India’s Carbon Market: 2010 Collaboration Between ICRA and IDEAcarbon
In 2010, India’s a leading rating agency ICRA joined hands with IDEAcarbon, a UK-based specialist in carbon finance. This strategic partnership was set to revolutionise the landscape of carbon trading and the assessment of Certified Emission Reductions (CERs). It underscored India’s escalating acknowledgment of the climate change challenges and the promising commercial prospects entailed by carbon credits.P.K. Choudhury, the Group CEO of ICRA, made the official announcement of this collaboration. He emphasised that the core objective was to deliver trustworthy and impartial analyses of carbon assets to the participants actively engaged in the carbon market.
P.K. Choudhury, the Group CEO of ICRA, made the official announcement of this collaboration. He emphasised that the core objective was to deliver trustworthy and impartial analyses of carbon assets to the participants actively engaged in the carbon market.
During that period, the Indian carbon market boasted a diversified portfolio of projects. These projects spanned an array of sectors, ranging from innovative uses of coconut shells and cashew kernels to the production of everyday essentials such as ice creams, ketchups, tea, and soaps. This diverse tapestry of endeavours was made possible through the Clean Development Mechanism (CDM), which permitted companies to initiate projects aimed at reducing emissions. Successful projects could earn saleable CER credits, each representing the reduction of one tonne of carbon dioxide. The price of carbon during 2010 was established on a per-tonne basis, typically fluctuating between $8 and $12 per tonne. The oversight of the CDM mechanism fell under the purview of the CDM Executive Board, responsible to the nations that had ratified the Kyoto Protocol under the United Nations.
The collaboration between ICRA and IDEAcarbon was a watershed moment in India’s carbon market journey in 2010. It marked a substantial leap forward in India’s commitment to addressing the intricacies of climate change and its proactive involvement in the burgeoning carbon credit landscape, positioning IDEAcarbon as a key influencer and partner in this endeavour.
