EKI Energy Shares Slump Over 17% On Carbon Credit Export Ban
The stock is set to decline for the second day.
Shares of EKI Energy Services Ltd. slumped more than 17%, the most in nearly three months, after India said it would ban carbon credit exports until the country’s own climate goals are met.
There will be no exports of carbon credits until India’s commitment of reduction of 45% emission intensity of GDP is met, Renewable Energy Minister RK Singh has said.
According to Manish Dabkara, chief executive officer at EKI Energy, however, the company “does not foresee the proposed amendments to have any impact on the export of credits in the voluntary carbon market. It will help the country to develop a robust carbon market and fast-track its journey to become net-zero”.
“This includes zero restrictions on the sale of carbon credits developed in India to International global markets,” he said in a statement.
India, the world’s third-biggest emitter, surprised pundits by announcing a plan to achieve net zero by 2070 at the COP26 summit in Glasgow late last year. The country is looking to cut 1 billion tons of emissions by 2030 as a first step in reaching its goal.
Shares of EKI Energy slumped as much as 17.3%—the most since May 17—to Rs 1,750 apiece as of 10:30 a.m. on Wednesday. Trading volume for the stock was at 224% of the three-month, full-day average. The stock is set to decline for the second day.