BHUBANESWAR: The Bhubaneswar Smart City Limited (BSCL) is planning to take advantage of the global carbon credit trading intended at reducing overall carbon emission in the city.
Officials of BSCL said that like different countries that have pledged to achieve 'net zero emissions by 2050' at the 26th United Nations Climate Change conference (COP26) last year, they are now focusing on making financial gains from carbon credit trading through its emission reduction initiatives.
Carbon credits are produced when greenhouse gas (GHG) emissions are reduced by one tonne, which is equivalent to one tonne of carbon dioxide. Each time a project reduces one metric tonne of GHG, one carbon credit is received.
These credits are licences that allow firms to produce a specific limit of greenhouse emissions. Companies utilise these credits to lower their net carbon emissions, which is a measurement that is frequently examined by investors. The credits can also be traded in public and private markets.
The BSCL has roped in an agency 'KEI' to identify the potential projects and initiatives and prepare proposals for their submission before the agencies authorised to issue carbon credits.If BSCL succeeds in earning any carbon credit out of these initiatives, a part of it will be provided to the agency as a fee.
As a number of initiatives for strengthening public transport and treatment of solid waste in scientific manner have been initiated in the city as an endeavour of sustainable development, BSCL CMD Sanjay Kumar Singh said they will also be able to earn carbon credit from these initiatives that can be monetised to support and finance other welfare and development activities in the city.
"The initiative aims to establish sustainable systems for garbage collection, segregation, and treatment in the city. Additionally, BSCL can also become a nodal agency for other government agencies in preparing projects that will help in earning carbon credits," he said.