The number of carbon credits issued for emission reduction projects in India is set to triple over the next three years, according to a CRISIL Research study.
The study said the number of carbon credits (technically called Certified Emission Reduction units or CERs) issued in India is expected to increase to 246 million by December 2012, from 72 million in November 2009.
This will cement India's second position in the global CER market. The growth in CER issuance will be driven by capacity additions in the renewable energy sector, and by the eligibility of more renewable energy projects to issue CERs.
Consequently, the share of renewable energyprojects in Indian CERs will increase to 31 per cent by December 2012 from 19 per cent in November 2009.
CRISIL expects India's renewable energy capacity to increase to 20,000 MW by December 2012, from the current 15,542 MW.
"We expect the government's focus on renewable energy power projects to drive this growth," said Nagarajan Narasimhan, director, CRISIL Research.