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In view of holistic compliance to the indicators of Sustainable Development and agenda of Community Development, the World Bank agreed to take up FaL-G as CDM project. Promoting a carbon abatement activity as CDM project is a laborious exercise, involving a lot of intellectual input and record work. Keeping in view the consultancy from high profile experts, the transaction costs are very high that deter small scale and tiny sector units in staking their claims for credits, despite their virtuous activity for achieving emission reductions (ERs).

To overcome this barrier to SSI units, INSWAREB opted to avail the scope of 'Bundling' provided by UNFCCC to small scale activity, by which, micro industrial plants producing FaL-G bricks, each with a potential to generate over 1000 ERs every year, have been targeted into a few bundles and offered as CDM projects.

In view of commercial deals involved in promoting CDM project for which INSWAREB has constraints as NGO outfit, the Scientists have promoted a corporate body, Eco Carbon Pvt. Ltd. (ECPL), in 2003, who have assumed the role of Project Entity and signed MOU with Community Development Carbon Fund (CDCF) in 2004. This is followed by signing Emission Reduction Purchase Agreement (ERPA) in June 2006, offering to transfer 600,000 ERs as contractual commitment and 200,000 under call option.

Despite of over 12,000 operating plants throughout the country producing over 36 billion bricks or equivalent volume of blocks, the penetration is mere 18% against 200 billion national brick market. This demand is likely to cross over 300 billion in the coming decade with rapid increase in urbanization and relevant construction activity. This is notwithstanding the potential scope of FaL-G brick/block in infrastructure segment which may be over 400 billion.

On supply side, against the generation of over 160 million tons of fly ash, approx. 18 million tons are used towards brick, leaving a huze hiatus. Moreover, 40-60 million tons of generation is expected to be added in the coming decade (2010-20). Hence any amount of efforts to work for proliferation of FaL-G units prove insufficient.

The global efforts to work for 'food security' summons for protecting fertile soils from denudation and putting them back to cultivation. This agenda would be served unasked for when FaL-G bricks pervade on walling market and prevent the production clay bricks. Hence INSWAREB owns the target in catalysing the promotion of 100,000 FaL-G brick units, producing over 300 billion bricks that can abate over 93 million tons of GHG emissions.

India's voluntary commitment stands at 20% reduction in GHG emissions by 2020. Against total emissions of 1,612 million tons in India, the country has to abate emission of 322 million tons in order to live up to its commitment. FaL-G bricks alone could abate 93 mn. tons contributing to 28% of its commitment.

In this back ground, in order to buttress the efforts of proliferation to the whopping target of 100,000 units with due incentive mechanism, ECPL envisages to register large number of bundles under Program of Activities (PoA), taking the support of fly ash generators in private sector and also some State Governments. Undoubtedly, FaL-G activity offers multilateral benefits to all the stake holders, be it government, entrepreneurs, consumers or community.

In today's context, industry means disturbance to Community and deformity to Ecology. Advancement in Technologies may assuage the magnitude but may not be successful in alleviating the maladies totally. In this background FaL-G is the unique and "Holistic E4 Technology" in serving Ecology, Environment, Economy and Empowerment.

How to apply and get the benefit of Carbon Credits?

The FaL-G brick manufacturing units should fill up the Application and send to ECPL along with prescribed enclosures. ECPL will communicate to the entrepreneur whether there are any bundles open for registration and, if so, the acceptability of the application. Once the application is accepted, ECPL's inspectors would visit and inspect the entrepreneur's plant as well as the records. If found satisfactory, ECPL would sign Emission Reduction Transfer Agreement (ERTA) with the Sub-Project Entity (SPE), the identity given to the entrepreneur. Upon Validation and Registration of the Bundle with CDM-EB, SPE would be duly informed and there upon carbon credit accrual starts to the account of SPE against the monthly reports of activity to be submitted to ECPL in prescribed form. SPEs' units are liable for periodical inspection by ECPL, and if any violation of Agreement is noticed, SPE is liable to be dropped from the Bundle.

Once in a year or in suitable time span, the accrued credits are subjected for Verification by the Designated Operational Entity (DOE) by Verifying the records of SPEs, who in turn would Certify the Credits and submit the same to CDM-EB for issuance of CERs. These CERs would be transferred to the buyer's account and, upon receipt of sale proceeds, revenue would be transferred to SPEs' accounts as per terms agreed in ERTA.

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