Green Ventures’ $300 million fund will boost India CDM projects

March 29, 2008 at 1:53 pm 2 comments

When the Kyoto Protocol’s Clean Development Mechanism (CDM) went into effect China, Brazil and India stood out as countries with greatest potential for carbon offset or reduction projects. You only need to look at CDM projects interactive map to realize that prediction was accurate: these three countries have the greatest concentration of dots representing project locations.

Take a closer look and you will see a difference. While China and Brazil are dominated by red and orange dots representing large scale projects, India is predominantly yellow representing small scale projects. It is in fact true that India has the largest number of projects, but they are smaller when compared with China’s. Now, a new entry into India’s CDM landscape may change that.

New York based Green Ventures International has launched a $300 million India Carbon Fund — the largest such allocation in the carbon credit space in India by a single private entity. The entire sum will be aimed at a wide variety of CDM projects including energy generation, distribution and efficiency. Registered under the name of “Green Ventures Advisors Pvt Ltd” with UNFCCC, Green Ventures will act both as a buyer and seller of Certified Emissions Reduction (CER) credits.

As founder and CEO Krish R. Krishnan points out, global financial & carbon players find the Indian carbon space very fragmented and difficult to navigate. In a recent interview with Mint, he said it took him two years to research and develop local understanding and networks in India. With offices in New York, London and Mumbai, his team is now well placed to connect India’s need for energy and cleantech with capital and technology from developed markets.

Not knowing the GVI team, its difficult to predict what kind of projects they may end up financing. They are open to the entire gamut and all mechanisms that CDM allows. But I think the market factors are ripe for large scale solar and energy efficiency in particular. Despite the huge potential, solar hasn’t take off in India because of cost. But solar cell prices are set to decline sharply as more silicon capacity comes online and around 50 VC-funded solar companies (many not c-Si) start itching for revenues. In energy efficiency, India’s large cement and agricultural sectors will prove to be low hanging fruit. Central and State (most recently Haryana) policies are increasingly lending support to such energy efficiency projects make them more attractive.

Anyway, here’s wishing Green Ventures a great success and hoping that its entry will spur cleantech activity to the benefit of India’s power-hungry masses and industry.

Entry filed under: energy, Energy Distribution, Energy Efficiency, Energy Generation. Tags: , , , , , , .

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2 Comments Add your own

  • […] Both focus on whether the UN’s Clean Development Mechanism aka CDM (born out of Kyoto Protocol) is achieving what it’s meant to do. For anyone interested in India, the first episode is a “must listen.” It’s especially relevant given the increased interest in CDM-related activity in India (see earlier post here). […]

    Reply
  • 2. Prabhakar Vishnu Kambale  |  April 27, 2010 at 2:00 pm

    All cleantech funds are interested in established technologies. However no importance is being given to new R&D activities in cleantech. Perhaps these new innovations may change or totally alter the present Technology scenaro.

    Reply

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