In a major boost to low carbon projects in India, Maverik Group, a major low cost renewable energy service provider, has announced plans to purchase 200,000 voluntary carbon offsets (VERs) from projects in India for its clients in Dubai and the Middle East.
The new subsidiary company Maverik Biomethane International Inc, will be setup in Dubai and hopes to enter the green energy Middle East market with a unique climate change solution as part of its product offering.
The VERs have been audited under the ISO 14064 offset protocol and are registered in an approved international registry. The price of the transaction was not disclosed. The deal is expected to close by March 2014 subject to approvals from the regulatory authorities in Dubai.
“We have been active in setting up biogas and other renewable energy solutions in the Middle East and Africa. Recently we were getting VER purchase requests from construction companies, malls, hotels and other clients who want to go carbon and climate neutral in order to attract more clients and customers. We were looking to source quality projects that are reducing global warming and felt that the voluntary carbon market offers the best and most cost effective solution to our needs. Plus the cost of purchase was lower due to the low administrative and registration costs associated with these VERs. We selected the VER supplier from India after a lengthy due diligence process and are satisfied with the social aspects of the projects as well” said Mr V. Pancholi, CEO, Maverik Group.
Many low carbon project owners of wind energy, solid waste methane avoidance and energy efficiency projects have switched to generating carbon credits under the voluntary carbon market due to the lack of demand in the compliance market and bureaucracy issues related to the UN and its designated auditors. The VERs will be sourced from CARBONyatra (India’s leading ISO 14064 voluntary offset provider) who have aggregated various low carbon projects in the renewable energy sector in India.
The voluntary carbon market is estimated to be valued at $523 million with over 101 million tonnes of carbon offsets sold in 2012. The low entry cost related to validation and verification of voluntary carbon projects and ease of registration is also a significant factor for developers moving onto the voluntary carbon market, say carbon experts.
CARBONyatra has been providing carbon offset services since 2007 and is active in the voluntary carbon offset market. “We’ve been supplying offsets to the European market and this is the first deal for clients in the Middle East. Climate change is real and we urge corporate to undertake emission reduction initiatives right away. Voluntary carbon trading is the lowest cost of abatement we currently have at the moment,” said Kishore Butani, Founder, CARBONyatra.