Carbon credits are available to companies involved in developing and implementing projects that reduce green house gas emissions, thereby generating carbon credits that can be sold in the carbon market. The carbon credits are referred to as Certified Emission Reductions (CERs).

In annex 2 countries like India, these credits are earned by implementing 'green projects' under a Clean Development Mechanism or CDM. These are validated and registered with the United Nations Framework Convention on Climate Change (UNFCCC), which also issues carbon credits after verification.
Company's co-generation plants at Deoband and Khatuali Phase 1 have already been registered with UNFCCC.

The Company's Cogen unit at Deoband has generated 1,90,000 Emission Reductions or ERs from November 04 to March 07 . These carbon credits have been verified and cleared by Executive Board of UNFCCC.

Going forward, on an ongoing basis, the company would be accruing 200,000 CERs per annum from all the three cogeneration units.