Cash-strapped rich nations shelving greenhouse projs: Assocham

NEW DELHI: Constrained for funds, the rich nations are holding back their plans to set up projects aimed at curbing greenhouse gases in developing countries, an Assocham study said.

"The reduced investment by the industrialised countries due to financial crisis is forcing them to shelve plans for building projects to curb greenhouse gases in developing nations," the chamber said, adding many such projects in India need huge investments for implementation.

It said the global carbon market that has been growing by 105 per cent and 84 per cent in 2007 and 2008 respectively, is now witnessing the pressure of global economic downturn.

"Prior to the crisis developers of clean development mechanism projects tapped the growing market for carbon credits to finance a part of their project costs, however, in the present scenario financing seems to be a mammoth task," it said.

The US and other rich nations that buy huge carbon permits from developing countries like India to cover their own emission limits, are no more able to shell out large amount, it added.

As per the Kyoto Protocol, developed countries have to reduce emissions of greenhouse gases to an average of 5.2 per cent below the 1990 level between 2008 and 2012.