MUMBAI, INDIA: Infrastructure Development Finance Co. Ltd (IDFC) and IDEAcarbon, the company that instituted ratings of carbon assets, signed a strategic working alliance today to encourage the adoption of ratings of environmental assets by market participants and develop other products to help a structured growth of the Indian carbon market.
IDEAcarbon, that owns The Carbon Rating Agency, is a pioneer in creating efficiency measures for the global carbon market and its alliance with IDFC follows IDEAcarbon’s recently sealed Strategic Alliance with an ICRA group company, ICRA Online, to provide the Indian carbon market participants independent and reliable ratings of carbon assets and in turn help them manage risks.
IDEAcarbon’s market collaboration envisaged under its working alliance with IDFC is geared to enhance the market usage of such carbon asset ratings, and develop other market instruments such as CER indices, carbon market related research and educational products, and building carbon trading mechanisms.
IDFC and IDEAcarbon will jointly structure and effect an appropriate corporate structure in India for expanding offerings of IDEAcarbon Companies’ products and services, including setting up of entities in India to cover ratings and other services.
Significantly, the collaboration between IDFC and IDEAcarbon envisages IDFC integrating ratings of environmental assets as one of the tools in its appraisal process, marking its proactive efforts in adopting best practices and facilitating a disciplined development of the growing carbon market.
Reiterating the importance of this development, Dr. Rajiv Lall, MD and CEO of IDFC said: “Transparency and benchmarks for risk are essential for an efficient carbon market, for the development of market mechanisms to have an impact on mitigating climate change and managing the low carbon imperative. IDFC’s relationship with IDEAcarbon is a significant enabler for us and the Indian market.”
“We are very pleased to see the leadership being shown by IDFC in the environment and sustainability space in India, and their sound recognition of and endorsement of the tools necessary to cause a significant institutionalization of the carbon and infrastructure markets in India,” said Shandi J. Modi, founder and CEO of IDEAcarbon.