IDFC and IDEAcarbon form alliance to aid growth of Indian carbon market
6 April 2010
6 April 2010, NewNetNews, New Energy World Network
Infrastructure Development Finance Corporation (IDFC) and IDEAcarbon, which instituted carbon asset rating, have signed a strategic working alliance to encourage the adoption of rating environmental assets by market participants and to develop products to help a structured growth of the Indian carbon market.
IDEAcarbon owns The Carbon Rating Agency and has pioneered the creation of efficiency measures for the global carbon market. Its alliance with IDFC follows IDEAcarbon’s recently sealed strategic alliance with an ICRA group company, ICRA Online, to provide the Indian carbon market participants independent and reliable ratings of carbon assets and in turn help them manage risks.
IDEAcarbon said the collaboration is geared to enhance the market usage of such carbon asset ratings and develop other market instruments such as certified emission reduction indicies, carbon market-related research and building carbon trading mechanisms.
The collaboration between IDFC and IDEAcarbon envisages IDFC integrating ratings of environmental assets in its financial decision making process, marking its proactive efforts in adopting best practices and facilitating a disciplined development of the growing carbon market, the company added.
Rajiv Lall, CEO of IDFC, 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. IDFC’s relationship with IDEAcarbon is a significant enabler for us and the Indian market.’
UK-headquartered IDEAcarbon is an independent provider of ratings, research and strategic advice on carbon finance. Founded by Shandi Modi, CEO and Ian Johnson, chair of the World Bank, it is part of the IDEAgroup whose advisors include Lord Nick Stern and Nitin Desai.
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