Indian firm signs deal to promote carbon market, I-RECs in Nepal

An India-based environmental services firm has struck an agreement with a trade group in Nepal that aims to promote the carbon market and renewable energy market in the latter country.

ProClime and the Independent Power Producers' Association of Nepal have signed a memorandum of understanding aimed at reducing carbon emissions, and sharing expertise on carbon trading and International Renewable Energy Credits (I-RECs).

"This collaboration will pave the way for ProClime to take 2,000 MWs of Nepal's hydropower to the global I-REC market, unlocking significant economic and environmental benefits," ProClime said in a social media post.

I-RECs are a type of 'energy attribute certificate' that verifies the generation of electricity from renewable sources and can be traded.

They can be used by companies to meet Scope 2 emissions goals, which cover indirect greenhouse gas discharges resulting from electricity use.

ProClime develops carbon projects, and carries out trading, climate investment and advisory services. The company is already active in Sri Lanka and Malaysia, as well as its home market.

It also offers an I-REC calculator that helps determine the revenue a renewables plant could receive from the I-RECs.

Nepal signed an agreement with the government of Sweden at the COP29 climate talks in Baku in November on Article 6 cooperation under the Paris Agreement on climate change.

"We plan to provide financing for climate mitigation activities in Nepal that contribute to the energy transition and promote sustainable development," said Caroline Asserup, Acting Director General at the Swedish Energy Agency, at the time.  

Nepal also finalised an Emissions Reductions Purchase Agreement (ERPA) with the Leaf Coalition buyers' group for 4 million carbon credits in November, which was worth approximately $50 million.

Link to article: https://www.qcintel.com/carbon/article/indian-firm-signs-deal-to-promote-carbon-market-i-recs-in-nepal-35604.html