Kyoto Protocol:

What is Kyoto Protocol?

It is a global climate change treaty
It is committing the industrialized nations to specify legally binding reductions in emissions of 6 green house gases. One of the major is Carbon–di-Oxide
On February 190O, 84 countries have signed the treaty including USA, European members, Canada, Japan, China and 22 countries were reported by UNFCCC Secretariat

Under Article 12 of Kyoto Protocol CDM enables reduction commitments by developed countries in a flexible manner
Developed countries will be allowed to invest in GHG emission reduction projects in developing countries and the major focus will be on India
India has huge scope in energy sector because of fossil fuel base. At present 70% is coming from fossil fuel
In return investment parties will receive credits or certified emission reductions that will be used to meet the target defined in Kyoto Protocol

Following types of projects would qualify for fast-track approval procedures...

On 20th July 1999, executive directors of World Bank approved the establishment of the PCF
PCF is intended to invest in projects that will produce high quality GHG emission
PCF will invest contributions made by companies and Government in Project design to produce emission reduction fully consistent with Kyoto Protocol

1 billion tons of carbon emission per year, during the commitment period of 1908-2012 to meet obligation of 5% reduction
The major market opportunity for carbon reduction is energy sector in all developing countries
India is one of the major countries having plans to invest in energy sector because 40 cr. of Indian population is deprived of commercial sources of energy
Govt. of India under recent Rural Electrification policy plans to go for renewable based stand alone systems for their energy needs