Benefits of carbon markets to small and medium enterprises (SMEs) in harvested wood products: A case study from Saharanpur, Uttra Pradesh, India

Abstract

Harvested wooden handicrafts products have the ability to lock carbon for long time and mitigate climate change. These products are currently eligible for availing benefits from voluntary carbon markets. The market size and opportunities for carbon credits are likely to increase substantially for these products during the post-2012 UNFCCC period. This paper analyses the limitations and opportunities for the wooden handicrafts units in Saharanpur in India in an emerging carbon market scenario. The results of this case study show that these small and medium scale enterprises (SME) can benefit from the carbon markets with the help of an integrated project to address energy efficiency, innovative technologies that reduce waste, improving the quality of supply and sourcing wood from sustainably managed and certified forests and trees outside the forests. It is estimated that the potential benefits from the carbon markets for harvested wood products in Saharanpur is about $ 5.34 million annually. India’s recent national action plan on climate change provides the policy back up to initiate this and minimise the carbon footprint of the country. Key words: Harvested wood products, carbon markets, handicrafts.