Electric bike companies eye carbon credits

India’s transport sector is eyeing a share of carbon offsets business under the Clean Development Mechanism (CDM).

Close on the heels of the Delhi Metro Rail Corporation (DMRC) earning credits for using regenerative braking system, it’s now the turn of Bangalore Metro Rail Corporation (BMRCL) to take the route.

“The Union government has identified Emergent Ventures India to identify markets, develop benchmarks and sell credits. BMRCL will pay 9% to the firm only if carbon credits are secured,” said BMRCL managing director N Sivasailam.

Besides Bangalore Metro, electric vehicle makers like Eko Vehicles and Kabirdass Motor are making a beeline to cash in on carbon offsets.

Chennai-based Kabirdass Motor Company has also appointed consultants to assess their carbon credit potential. Ian D’Cruz, country head, sales and marketing, said that they will kick off trading carbon credits in the next two years.

Bangalore-based Eko Vehicles with the help of Swiss consulting group Grutter Consultants has already estimated an annual emission reduction of 386,889 tonnes in CO2.

This has been validated by TUV and sent to United Nations Framework Convention on Climate Change (UNFCCC) for approval. Any company in India can get linked to UNFCCC and know the level of carbon emission allowed.

“The company will be getting carbon credits equal to earnings of $4 million over a 10 year crediting period,” Anil Ananthakrishna, chairman and CEO, Eko Vehicles told DNA Money.

Eko has sold 18,000 electric scooters in the last four years. An electric scooter is estimated to save 0.25-0.4 tonnes of carbon per year. 

Rohini Balasubramanian, executive director of Grutter Consulting, said there is a growing interest to cash in on carbon offsets. As of now, we have seven clients. We are in talks with at least five other clients who are interested in getting carbon credits.”