Agricultural Finance Corporation Ltd. (AFC) signs Memorandum of Understanding with Veda Climate Change Solutions Ltd. (VCCSL) for CDM Services
During the 1992 Rio Earth Summit – the United Nations Framework Convention on Climate Change (UNFCCC) was adopted to which India is also a party. A protocol to the UNFCCC, known as Kyoto Protocol, was adopted in December 1997, which enjoins upon the developed country parties to reduce their GHG emissions by a global average of 5.2% below the 1990 levels during 2008-12. The Kyoto Protocol has brought out three mechanisms for GHG emission abatement.
Out of these, CDM is meant for the developing world and provides them an opportunity to adopt cleaner technologies and be paid for emission reductions. Through CDM industrialized countries can finance mitigation projects in developing countries contributing to their sustainable development. According to GTZ CDM-India, CDM projects have so far generated more than 207.82 million CERs (Certified Emission Reductions, each equivalent to one tonne of CO2). The mechanism is anticipated to generate more than 2.7 billion CERs in the first commitment period of Kyoto Protocol. “With 1,193 projects in 51 countries in just two and half years the ‘infant’ CDM has shown its potential and is maturing to ‘junior’. It is clear that there is still greater potential that can be realized ……” says Mr. R.K. Sethi, Chair CDM Executive Board.
AFC, having institutional strength, position and capability, is in the progression of facilitating the CDM process in the country through participating in awareness generation, capacity building of the grass root institutions, project implementation, and distance education on the subject. Towards this end, AFC has entered into a MOU with VCCSL.
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This MOU was entered between AFC and VCCSL on 18th February, 2009. Accordingly, both the organizations would collaborate for promotion, development and implementation of projects/programmes for climate change mitigation and adaptation in the country to enable the rural poor to benefit from carbon trading. AFC & VCCSL would also undertake joint ventures for education, training, research & extension to build the capacity of multiple stakeholders to benefit from global mechanisms such as United Nations Framework Convention on Climate Change (UNFCCC). |
The association between AFC and VCCSL would bring about synergy in accomplishing the envisaged goals by supplementing each other’s developmental efforts and aid the process of sustainable development. The identified areas of intervention through joint ventures would be:
- Training & capacity building
- Grass-root level implementation
- Project management
- Research
- Distance education.
The association would also take initiatives in channelling programme benefits and other available resources from institutions like NABARD, SIDBI, RMK and others through a consortium approach. Efforts would also be put in by both the organizations for seeking grants from various donor institutions for implementation of proposed joint ventures. |
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VEDA Climate Change Solutions Ltd. (VCCSL – www.vccslindia.org ) having its Head Office at 48, Mithilanagar Colony, Road No.12, Banjara Hills, Hyderabad was established in 2005 to integrate business, development and environmental conservation to provide economic, social and environmental benefits both locally and globally. It is the only organization in India to cross the complete A/R CDM Project cycle up to the signing of Emission Reduction Purchase Agreement (ERPA). It has domain knowledge in sectors like forestry, agriculture, coastal management, agro-forestry, horticulture, bio-energy, bio fuels etc. and cross functional expertise in carbon finance, social change management and community development. It offers support to individuals, groups and institutions through viable and efficient delivery systems; capacity building models and consultancy services. VCCSL designs, develops and undertakes projects that are capable of generating carbon revenues to improve livelihoods of rural communities. It works closely with international agencies, governments, industry, research institutions, funding agencies and NGO partners to be able to bring consolidated benefits to the poor who are hit hardest by climate change. In 2003, VCCSL developed a project on improving rural livelihoods through carbon sequestration by adopting environment friendly technology based agro-forestry practices. It is one of the 22 pioneering projects selected by the BioCF for purchase of CERs from around the world to demonstrate best replicable agro forestry practices with carbon credits.
Agricultural Finance Corporation Ltd. (AFC –www.afcindia.org.in), on the other hand, has strong background in providing consultancy services for the past more than 4 decades in the field of agriculture, forestry, environment and other sectors related to rural development. Its major clients are Ministries of Government of India and Development Departments of various State Governments. AFC possesses Regional, Branch and Project offices across the country for undertaking various assignments. Besides consultancy, AFC is also into project implementation, distance education, training & capacity building and micro-finance.
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