Tata Chemicals project fails to meet UN's clean development norms: report

06 March 2009

Tata Chemicals is reported to have abandoned its clean development mechanism (CDM) project after failing to get approval from the United Nations Framework Convention on Climate Change (UNFCCC).

The UNFCCC in a statement said it has rejected Tata Chemical's project at its fertiliser unit in Haldia, West Bengal. Tata Chemicals' proposal, submitted on 6 September 2008, was rejected on 13 February 2009.

The project, if approved, would have generated over 24,000 carbon credits per annum for Tata Chemicals, reports said, adding, the Tata Chemicals project had amassed as many as 53,204 carbon credits so far.

The report comes amidst a general decline in the value of carbon credits and a switch to renewable energy projects.

Data available with the UN shows that Indian entities withdrew as many as six applications for projects related to cutting carbon emission in 2008.

Under the Kyoto Protocol of the UNFCCC, companies investing in projects or mechanisms that help reduce carbon emissions into the atmosphere are eligible for award of carbon credits. The carbon credits, or carbon emission reduction (CER) can be sold to polluters in the international market for financing their projects.