Allianz, C-Quest Capital launch India carbon project

SINGAPORE Tue Jan 31, 2012 5:29pm IST

Related Topics

Stocks

   

SINGAPORE (Reuters) - German insurer Allianz SE (ALVG.DE) and U.S.-based C-Quest Capital LCC said on Tuesday they will finance the installation of about 8.5 million energy-efficient lightbulbs in India in return for U.N.-backed carbon offsets.

The 10-year project will fund the installation of compact fluorescent lightbulbs in Punjab, Andhra Pradesh and northern Delhi, Armin Sandhoevel, chief executive of Allianz Climate Solutions, told Reuters in Singapore.

He said the project would cut about 3.7 million tonnes of carbon emissions over the decade, about the equivalent of the annual pollution from one million cars, and earn 3.2 million internationally tradeable U.N. offsets called certified emission reductions, or CERs.

CERs were trading at 3.88 euros on the secondary market on Tuesday, a drop of about 70 percent from levels in mid-2011.

Sandhoevel, speaking on the sidelines of a climate and insurance conference, said Allianz could live with a market level of $4 for CERs.

The project is part of an expanded form of U.N.-offset projects that reward clean-energy investments in poorer countries. Called programme of activities, or PoA, it allows a large number of identical projects across a region or country to be bundled together.

This cuts project administration costs and can result in a large number of emissions reductions and therefore offsets.

The Allianz-CQC project is only the second PoA registered in India and one of 14 registered globally.

None have yet to receive their CERs but Sandhoevel was confident issuance would occur in a matter of weeks.

He said Allianz had about 20 low-carbon projects in the pipeline focusing on energy efficiency, renewable energy and forest carbon in developing nations to earn either CERs or Gold Standard voluntary market offsets.

The company is already committed to forest preservation projects in Kenya and Indonesia as part of Allianz's goal of reducing its own global emissions and expand its carbon-cutting investments.

(Reporting by David Fogarty; editing by Jason Neely)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay"  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage