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Environment-friendly projects may attract $200 bn in FDI
BS Corporate Bureau in New Delhi | May 14, 2003 13:07 IST
India has the potential to attract $200 million worth of foreign direct investment a year on account of projects aimed at reducing greenhouse gas emissions, according to an expert on clean development mechanism and climate change.
A major portion of the investment would come from multi-lateral agencies and global energy majors, Jed Jones, principal consultant, KPMG and special advisor on climate change, said.
The FDI estimate is lower than independent agencies' estimate of $1 billion per year. However, India, the sixth largest producer of green house gases in the world, has to start implementing clean development mechanism projects soon to meet its targets.
Jones, who was involved in preparing the requisite documentation for the clean development mechanism, said India could not wait for the implementation of the standards set in the future. Jones is also responsible for the joint implementation of projects to demonstrate the viability of cleaner norms as elaborated in the Marrakesh Accords.
India is currently the sixth largest producer of greenhouse gases, contributing 3 per cent of the world's total emission. But its contribution to emissions is growing at more than 4 per cent (almost the rate of GDP growth) and which is twice the rate of the average world rate.
The CDM projects will help not only India reduce green house gas emissions, it will help in increasing energy efficiencies of companies.
A majority 55 per cent of the emissions come from the energy sector. The transportation sector also contributes to a major part of emissions, Jones added.