Cemtrex, an industrial and manufacturing solutions company, announced it is eying the big opportunity ahead in the Chinese market for its Methane Catalytic Destruction Reactor (MCDR) technology.
China has announced plans to launch in 2017 a national cap-and-trade program involving six of its largest carbon-emitting industrial sectors, beginning with coal-fired power generation.
Early estimates in the Carbon Pricing Watch 2016 suggest that if China’s national market is implemented, the global value of carbon trading market could potentially double to US$100 billion.
“Putting a price on carbon pollution is essential to help countries deliver on their promises for the Paris climate change agreement, as it’s an efficient and effective way to help cut emissions and send a clear signal to the private sector to invest in cleaner, greener growth,” said John Roome, senior director for Climate Change at the World Bank Group.
“Pricing carbon can send an important signal to the market,” said Vikram Widge, head of Climate and Carbon Finance at the World Bank Group. “As more countries move to price emissions, we will begin to realize the considerable potential to shift global financing flows away from carbon emissions and into much needed climate smart investments.”
Cemtrex has developed a method for the destruction of Ventilation Air Methane (VAM) with its MCDR technology, whereby methane, a greenhouse gas, is destroyed economically at low temperatures and generates carbon credits for its user.
The MCDR, with a starting price around $2 million, pays for itself within 3-4 years from the carbon credit revenue. In 2015, governments globally raised about $26 Billion in revenues through carbon trading of greenhouse gases, representing 60 percent increase from 2014. The total value of such mechanisms is currently estimated at just below $50 Billion, according to Carbon Pricing Watch 2016.
Cemtrex’s chairman and CEO, Saagar Govil, said, “We expect China’s plans to continue, and the rest of the world, including the United States, to move ahead thereafter. With the dramatic increase in the market size we expect we will be able to market our MCDR and greenhouse gas monitoring products more widely.”