After issuing shares at a price of Rs 102 per share, the firm currently finds itself riding a stock price of 7056, a market cap of Rs 4850 crores, on a projected turnover of Rs 1500 crores by the end of the FY 22 financial year.
EKI Energy Services Limited and Shell Oversea Investments BV’s Joint Venture for Carbon Emission Reduction is especially significant here, as it can be a game changer as it appears to be one of the biggest deals around carbon credit trading in India.
Dabkara anticipates the voluntary market of carbon credit trading to grow at 2 billion dollars annually from India and other developing countries put together.
As per the BEE’s is small with demand around 95 million tonne of CO2 equivalent per year, representing 0.2% of global greenhouse gas emissions.
Under this deal we will create more sustainable solutions, forests, more agri based solutions, rice and mangrove farming to sequester carbon dioxide from the environment.” When you have a big oil giant investing in the Indian market, it is sure to send a clear signal about the importance of carbon credit market.
Also aiding EKI is the rapid progress in terms of renewable installations in India over the last decade or so.
It is since then that almost all the worlds industrially developed and developing countries started considering this as a serious issue and engaged in formulating carbon emissions standards and guidelines for controlling harmful gas emissions.
Manish Dabkarapoints out that there is negligiblebuying of carbon credit happening in India.
At this point, it is also important to distinguish carbon credits from RECs or Renewable Energy Certificates, which are freely traded again in energy exchanges now.
Carbon credit, a legally tradable certificates permits the right to emit one ton of carbon or carbon dioxide equivalent.
The document was prepared to understand the present infrastructure and how carbon markets have been operating, as well as examining the projected view of an independent National Carbon Market.
This Blueprint quotes a report from the Deloitte Economics Institute which shows India must act now to prevent the country losing US$35 trillion in economic potential over the next 50 years due to unmitigated climate change.
This Dabkara explains happened because earlier markets were linked to the European Union Emission Trading Scheme, but as Indian credits were not much tradeable in EU, rates fell and came to be measured in international currency.
From 2021, the rates seem to making it back on track, as they now range between USD one to 10, for Indian carbon credits being traded within India or outside it.
From the selling side, a few independent power producers like Azure, Acme Solar, ReNew Adani, have started considering the carbon credits revenues that they earn from selling carbon credit as an important source of income, he adds.
He also indicates that, as certain big giants may also be hoarding carbon credits, as the rate is low now, but as demand peaks, the prices are sure to go up.
Dabkara adds, “India has very clear commitments, but we need to have an extremely clear policy which provides a clear mandate to various sectors on how much to reduce.
Of course, there is still a long way to go as far as building awareness around the importance of buying carbon credits also go.And that is where the next opportunity lies for EKI.
There are currently two commodity exchanges, namely MCX and NCDEX operating in carbon trading, however, experts feel that greater transparency also needs to be there for improving the market operations and helping the producers earn revenue out of carbon credit projects easily.