An Analysis of Carbon Credit Revenue Practices in Indian Corporate Sector

All the developed nations which have exceeded the levels of green house gases have to cut the emission rate or borrow carbon credits from developing countries. Hence, trading in carbon credit has been started. Large number of entities in India generating carbon credits and sells them to developed countries through international market. After the implementation of Kyoto Protocol, the opportunity of revenue generation by taking up structured Clean Development Mechanism (CDM) projects has given a new source of revenue for Indian Corporate sector. India is one of the major players in the global market on the supply side of CERs after China. In this paper attempt has been made to explore the revenue from carbon credit in Indian corporate sector. This study includes ten companies which have disclosed carbon credit revenue in their annual report. The sample units are selected from various sector of economy like chemical, power, mining, sugar, paper, steel, cement and electric equipments. On an average the sample units could be able to provide only 6.84 percentage of total revenue. If carbon credit revenue of two companies viz. Gujarat Fluorochemicals and Rana Sugar ltd. are excluded from the sample average comes 0.776%. In order to examine the hypotheses Chi-Square test and ANOVA statistical techniques have been used. The first hypothesis is accepted while second hypothesis is rejected. It reveals that there is no significant difference among different sample companies regarding generation of revenue from carbon credit trading but there is significant difference among the average value of revenue earned from carbon credit transactions of different years of sample units.