Carbon credits
- 1. By: DIVINE KAUR CARBON CREDIT
- 2. Birth of Carbon Credit Concept of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants
- 3. The Major Concern… GLOBAL WARMING
- 4. Green house gases leading to Global Warming CO 2 Methane Nitrous Oxide Hydroflourocarbon Sulphur Hexaflouride Perflourocarbon CO 2 t-e…… one tonne of CO 2 equivalent
- 5. Birth of UNFCCC In 1992, Rio Brazil Objective… Green House Gases should be stabilized within a time frame.
- 6. The KYOTO PROTOCOL… An agreement signed in December 1997 in Kyoto, Japan
- 7. KYOTO PROTOCOL Annexure 1 Non Annexure 1 Developed Developing Under developed
- 8. The Kyoto Protocol…… Objective Reduction of Green House Gases emission by developed countries in the The First Commitment Period (2008-2012)
- 9. DID YOU KNOW???? WHY
- 10. Birth of Carbon Credit Concept of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants
- 11. What is Carbon Credit under the KYOTO Protocol… A credit for reducing 1 ton of CO 2 (Green House Gases) from the atmosphere
- 12. How to generate Carbon Credits??? CARBON CREDITS
- 13. METHANE CO 2 METHANE CO 2 EARN CARBON CREDIT METHANE
- 14. USE OF CARBON CREDITS IN EMISSION REDUCTION
- 15. REDUCTION NATIONAL MEASURES ADDITIONAL MEASURES THE FLEXIBILITY MECHANISM
- 16. FLEXIBILITY MECHANISM Clean development Mechanism Joint implementation Emission trading Project based
- 17. Emission Trading Developed country A (needs CC) Developed country B Sell these carbon credits Payment for CC Earns carbon credits called Assigned Amount Units
- 18. Joint Implementation Developed country A (needs CC) Developed country B Sets a project Sell carbon credits Earns carbon credits called Emission Reduction Units
- 19. Clean Development Mechanism (CDM) Developed country (needs CC) Developing Country Sells carbon credits Sets a project Earns carbon credits called Certified Emission Reduction
- 20. Concept of VER’s VER Countries not committed to the protocol Voluntary Emission Reduction OR Verified Emission reduction
- 21. What should be the price of carbon???? At present, price of 1 carbon credit is 10 Euro to 15 Euro
- 22. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
- 23. Market for Carbon Trading…… Currently there are 5 Environmental Exchanges, trading in Carbon Credits POWER NEXT EUROPEAN CLIMATE EXCHANGE
- 24. India’s Stance in Carbon Credits
- 25. India along with China, lead countries in earning Carbon Credit
- 26. India pocketed Rs 1,500 crores in the year 2005 just by selling carbon credits to developed- country clients. India has generated 30 million Carbon credits & 140 million are in pipeline
- 27. Some of the Leading companies of India using & selling Carbon Credits… GUJARAT FLOUROCARBONS Ltd.
- 28. SRF… . The major beneficiary of reducing GHG gases
- 29. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
- 30. Concern for The Chartered Accountants ….
- 32. Present Accounting treatment….. Treatment under IFRS Treatment under US GAAPS Treatment under AS IAS 20 (Government grants) currently no guidance note available currently no accounting standard available
- 33. Tax Treatments Will there be any tax on Carbon Credits ?????? If there is income there will be tax…
- 34. OR CER Transaction Tax TAX TREATMENT INDIRECT TAX DIRECT TAX Income from CER’s Other Income Business Income Goods Services VAT, etc Service tax
- 35. However, NO set Accounting or Tax Treatment has yet been decided
- 36. Scope for Chartered Accountants
- 37. Other opportunities….. As an auditor…. In audit of Carbon Trading As a Carbon Trading Consultant Carbon Trading Broker
- 38. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
- 39. What after 2012… End of Commitment Period??? NOT SUCCESSFUL THE COPENHAGEN CONFERENCE
- 40. Thank You……