Emission Trading is an administrative approach used to control pollution by providing economic incentives for a reduction in the emissions of pollutants, according to the Kyoto Protocol.
One hundred and eighty seven countries, including India, signed and ratified this protocol with the common purpose of reducing greenhouse gas emissions.
In any state, the limit on the amount of a pollutant that can be emitted is set by a governmental body. Companies or other groups are issued emission permits and are required to hold an equivalent number of credits which represent the right to emit a specific amount of a substance.
In the construction sector cement, lime, bricks and glass manufacturers are interested by this system. According to this system, the total amount of credits cannot exceed the cap, thereby limiting the total emissions to that fixed level.
Companies that need to increase their emission allowance must buy credits from those who pollute less.
The transfer of allowances is referred to as a trade in which the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than the amount that was needed.
This system is based on a declaration issued by each company, and validated by a third party organisation.
ICMQ is accredited in Italy to verify the effective use of emissions.
ICMQ India, based on the italian experience, may conduct audits in Indian organisations, to validate information provided by the organisation regarding the total quantity of emissions.
This service allows serious companies that have invested in the improvement of their performance to sell unused quotas.
ICMQ then has the opportunity to obtain an economic return from an investment oriented environment.
Finally ICMQ India may raise a certificate to be sent to the national competent authority.