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6 April 2010

6 April 2010, NewsWire18, New Delhi

IDFC in pact with IDEAcarbon for rating carbon assets in India

ICRA Online, a wholly owned subsidiary of rating agency ICRA Ltd, today inked a pact with UK-based co IDEAcarbon to develop carbon credit market in India.

The alliance will rate carbon credits related with renewable energy projects. It will also develop best practices and assess risks associated with carbon market instruments.

"There is a need for rating carbon credits in India. The alliance is a step for Indian companies to gain from international best practices and tools," P.K. Choudhury, vice chairman, ICRA, told reporters.

IDEAcarbon Chief Executive Officer Shandi Modi said both the companies will also develop products in the future to promote transparency in carbon credit markets in India.

"As of now, there is no agreement on product development but it is something we could look at in the future," he said. IDEAcarbon provides rating and research services on carbon markets.

Separately, Infrastructure Development Finance Co Ltd also entered into an alliance with IDEAcarbon today for developing products catering to the domestic carbon credit market.

As part of the collaboration with IDFC, the tie-up will increase usage of carbon asset ratings, develop carbon emission reduction indices and carbon market related research and educational products.

"Along with IDFC, we will help in pricing risk associated with infrastructure and renewable energy projects," Modi said.

"Transparency and benchmarks for risk are essential for an efficient carbon market, for the development of market mechanisms to have an impact on mitigating climate change and managing the low carbon imperative," Rajiv Lall, chief executive officer, IDFC, said.