In 2010, the Infrastructure Development Finance Company Ltd. (IDFC) and IDEAcarbon, the company responsible for introducing carbon asset ratings, entered into a strategic working alliance. This collaboration was aimed at promoting the adoption of environmental asset ratings among market participants and developing other products to support the structured growth of the Indian carbon market. IDEAcarbon, which owned The Carbon Rating Agency, was a pioneer in establishing efficiency measures for the global carbon market. This alliance with IDFC followed IDEAcarbon’s recently formed Strategic Alliance with an ICRA group company, ICRA Online, with the goal of providing independent and reliable carbon asset ratings to participants in the Indian carbon market, thereby assisting them in managing risks.
Under the working alliance with IDFC, IDEAcarbon aimed to enhance the market usage of carbon asset ratings and develop additional market instruments, including CER indices, carbon market-related research, and educational products, as well as building carbon trading mechanisms.
IDFC and IDEAcarbon collaboratively structured an appropriate corporate framework in India to expand the offerings of IDEAcarbon Companies’ products and services, including the establishment of entities in India for ratings and other services. Together, IDFC and IDEAcarbon crafted a robust corporate framework in India, facilitating the expansion of IDEAcarbon Companies’ products and services. This extended to the formation of new entities dedicated to providing ratings and various related services. One noteworthy aspect of this partnership was IDFC’s commitment to integrating environmental asset ratings into its appraisal process, underscoring the organization’s dedication to adhering to best practices and contributing to the structured growth of the carbon market.
Dr. Rajiv Lall, the Managing Director and CEO of IDFC, emphasised the importance of transparency and risk benchmarks in the efficient operation of the carbon market, emphasising the need for market mechanisms to mitigate climate change and manage the low carbon imperative.
Shandi J. Modi, founder and CEO of IDEAcarbon, expressed their pleasure at IDFC’s leadership in the field of environmental sustainability in India and their recognition of the tools necessary for the institutionalisation of the carbon and infrastructure markets in India. He commended IDFC for recognizing the indispensable tools required to institutionalise and shape the landscape of carbon and infrastructure markets in the country. The collaboration between IDEAcarbon and IDFC marked a significant leap forward in India’s journey towards a more sustainable and environmentally conscious future, with IDEAcarbon taking centre stage as a key partner in this transformative endeavour.
This information is repurposed from the original print in One India (2010).