27 October 2006 — Cemtrex, Inc. announced that the company is expanding its scope of activities in the carbon credits market to include energy efficiency projects. Energy efficiency projects characterized by reduction in energy inputs and emissions include: refurbishment of power plants, combined cycle turbines, improvements of heating plants, process heat recovery, and facility space heating and lighting.
“If assessed and implemented properly, the returns from energy efficiency investments can be high and the technical risks relatively low and these energy efficiency projects once implemented will bring an average 5-20 percent overall reduction in energy consumption, thus providing subsequent CO2 emission reductions,” said Aron Govil, CEO & President of Cemtrex.
Carbon credits are emission offsets, per the Kyoto Protocol, that are generated from energy efficiency projects which displace carbon emissions from traditional fossil fuel sources like coal, oil or gas with the subsequent reduction in greenhouse gas emissions.
Companies, agencies and governments buy, sell, bank and trade carbon credits called Certified Emission Reductions or CERs.
The Kyoto Protocol, adopted in 1997, went into effect on February 16, 2005. The agreement legally binds participating industrialized countries to reduce their emissions of greenhouse gases during the five-year commitment period of calendar years 2008-2012 as compared to baseline emissions in the year 1990. The Protocol does not set limits on the greenhouse gas emissions of developing nations. So far, the agreement has been ratified by 141 countries, representing over 61 percent of global emissions. The U.S. has not ratified the agreement. However, even though companies in the U.S. are not subject to Kyoto’s emission caps, U.S. companies that operate in nations complying with the Kyoto Protocol do have to meet those countries’ caps.