India has the second largest number of total projects in the CDM pipeline, after China. But while China controls more than 50 per cent of the total carbon credits market (by volume), India barely controls 15 per cent.
There are a number of reasons for this discrepancy: the Indian government has not been as proactive and aggressive as the Chinese in courting foreign investments in CDM; it is harder to receive public funding for CDM projects in India, etc.
And now, a new survey by the international tax advisory and auditing firm, KPMG, tells us that Indian companies have also not been aggressive but have shown limited initiative in tackling climate change. The KPMG survey of 70 CEOs found their response to climate issues was driven largely by the need to comply with expected regulations, while leaving the leadership role in tackling global warming to the government. The survey included top companies from power, automobile, petroleum, cement, mining, and construction sectors.
Moreover, the KPMG survey showed that only 17 percent of the respondents saw the growing market for low-energy/carbon products and services as motivation to reduce their carbon footprints.
Globally, many of the top industries have undertaken self-imposed cuts on their emissions and have reduction targets for themselves. In India, however, only 41 percent of the respondents had some qualified reduction goals to be achieved by 2010, while about 38 percent had no such goals.
Thus it is not surprising that despite high potential, India's performance in the global CDM market is mediocre. With even the leading industries refusing to get serious about investing in emissions reductions measures, it is difficult for India to capture a substantial share of the global CDM market.
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