The Indo-German initiative 'Carbon Bazaar 2010' to be held here next week will target Small and Medium Enterprises (SMEs) to help them participate in Carbon Development Mechanism (CDM) and earn carbon credits.
"So far CDM investment has been limited to the mega projects in the country while SMEs have been neglected because of their financial constraints," a senior environment official said.
"But since SMEs are voracious consumers of resources and energy and the result is a significant generation of waste by-products, they need to be energy-efficient," he said.
In the first commitment period of Kyoto Protocol, it has proven difficult for SMEs to participate in CDM projects and to benefit from the foreign investment and technology transfer advantages the mechanism offers.
But they cannot be neglected as they are vital to the growth of the economy, he maintained.
The two-day Carbon Bazaar beginning May 10 will offer direct business-to-business meetings between SMEs and investors. It will also hold exhibitions showcasing the state-of-art technologies. Stakeholders from across the world are expected to attend the mega event.
The CDM is one of the flexible mechanisms in the Kyoto Protocol allowing the rich nations to cut down their green house gas emissions by investing in green projects in the developing countries and buy carbon credits (CERs) generated from them.
The official said SMEs need creative solutions such as "bundling" small projects together to access the CDM, supported by clear policy frameworks and public-private partnerships for infrastructure projects.
Second in the series, the annual affair is being organised by the Indian Environment Ministry, German Federal Ministry for Environment, Nature Conservation and Nuclear Safety in collaboration with GTZ Climate Change, India.
The Protocol is an international pact linked to the UN Framework Convention on Climate Change (UNFCCC) to deal with threats from global warming caused by the green house gases in the atmosphere.