Title: Making Indian companies CDM compatible: towards a green financial strategy

Authors: Ehtesham Husain Abbasi; Anshul Singh; Mihaela Constantinescu; Asif Khan; Mohd Naseem

Addresses: Department of Accounting, College of Business, Rabigh, King Abdulaziz University, Jeddah 23218, Saudi Arabia ' Genpact, New Delhi, India ' Faculty of Marketing, Bucharest University of Economic Studies, București 010374, Romania ' Chongqing Institute of Green and Intelligent Technology, China Academy of Science, Chongqing, China ' Department of Computer Science and Engineering, Thapar University, Patiala 147001, Punjab, India

Abstract: Climate change is the most challenging international policy problem the world has ever faced. Implementing new policy and projects can help to reduce global emissions and reveal future opportunities for countries and companies taking part directly or indirectly as financial a strategy. This paper seeks to discuss CDM as a successful business strategy to be adopted by Indian companies to support global environmental initiatives. Secondary data from those companies which are chosen for research are used to carry out a financial analysis of CDM projects. Financial analysis has been done with the help of different ratios, namely carbon ratios, carbon credits/net profit, Carbon Credit/Fixed Assets, Operating exp/Carbon Income. The main sources of Secondary Data are from the websites of Indian Planning Commission (now known as National Institute for Transforming India Aayog or NITI Aayog), Ministry of Environment & Forests, IFC, World Bank, UNFCCC and Annual Reports of companies. Three industrial units sold carbon credit and generated a huge amount of income. There is a significant opportunity awaiting India in carbon financing which is estimated to go up to $100 billion by 2017.

Keywords: CDM compatibility; clean development mechanism; carbon finance; carbon markets; India; green financial strategy; green economics; climate change; carbon credit; carbon emissions.

DOI: 10.1504/IJGE.2017.082715

International Journal of Green Economics, 2017 Vol.11 No.1, pp.62 - 76

Accepted: 27 Dec 2016
Published online: 08 Mar 2017 *

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