The international carbon market, as we see it today, is the result of the early regulatory efforts to mitigate climate change.

Since 2003-04, when the CDM Executive Board (EB) assumed a more functional role, more than 1,700 CDM projects have been registered, promising a total of over 1.5 billion metric tonnes of CO2 reductions by the end of the first Kyoto commitment period.

In conversation with Mr R.K. Sethi, Director, Ministry of Environment and Forests. Mr Sethi's association with CDM goes back to 2001 when he was given the responsibility of the Climate Change and CDM initiative: It was under his guidance that the Designated National Authority (DNA) was established in the country.

In the Indian context, the utilisation of renewable energy resources for electricity generation is not new. Particularly the wind sector presents a success story where India is one of the global players. However, considering the technical and geographical potential of wind power, a vast amount of the resource still lies untapped.

The wind turbine industry in Denmark is the largest in the world. The success has been primarily due to a close collaboration between the government and the industry to finance key areas such as research and development, certification, testing and the preparation of standards.

Originally enacted as part of the National Energy Policy Act, 1992, "The Production Tax Credits" (PTC) scheme has been the mechanism used in the United States to subsidise and stimulate the production of wind energy. Till 1985, the tax credits were based on installed capital costs.

With the world economies painting a gloomy financial scenario, time couldn't have been more opportune to take stock of financing in the renewable energy sector in India. The 3rd Renewable Energy Finance Forum, which kicked off to a good start in Mumbai proved to be more than just an eye opener.

Mr Debashish Majumdar's experience spans over 30 years in the field of renewable energy and energy efficiency. An engineer from IIT Delhi, he has been with the Indian Renewable Energy Development Agency (IREDA) for over eleven years. Inwind Chronicle interviewed Mr Debashish Majumdar for his views on financing in the wind sector.

The author looks at financing of wind power projects from the perspective of a financial institution in India.

Renewable Energy Credits/Green Certificates (RECs) is a policy instrument which provides evidence that an electricity generator has produced a certain quantum of power from a renewable energy source.