The well-known CDM mechanism aims at reducing the developing nations’ annual CO2 emissions while supporting their efforts on a sustainable development path in the energy sector, so that they can attract investments in clean energy technology.
Following the approval by the UNFCCC, Tata Power’s Khandke wind farm will earn 85,000 credits annually, in terms of certified emission reductions. Currently, each credit is worth around 12 euros.
Tata Power is decidedly adopting a policy aiming at widening its activities in the clean energy sector. Its wind energy capacity already amounts to 200 MW and, according to its development plans, it is poised to grow by 150 to 200 MW per year.
Tata Power India’s largest integrated private power utility as part of its sustainability initiative is committed to reducing its carbon footprint. One of the ways towards that goal is the addition of “clean and renewable energy” generation capacity. The Company proposes to add 150-200 MW of wind power capacity every year.
CDM is an instrument established under the Kyoto Protocol to achieve both sustainable development and contribute to the cost effective mitigation of climate change. The CDM will allow countries with emission reduction commitment to meet part of their reduction abroad, where Green House Gas (GHG) abatement costs can be lower. The CDM will also enable developing countries to attract investments in clean energy technology and assist them on a sustainable development path.