Assam Carbon Unlisted Shares Essentials

Carbon Industry

• Carbon markets strive to reduce greenhouse gas emissions by allowing traders to trade emission units (carbon credits), which are certificates that indicate emission reductions. Trading allows entities that can reduce emissions at a lower cost to be compensated by higher-cost emitters for doing so. Carbon market mechanisms promote awareness of the environmental and social consequences of carbon pollution by putting a price on carbon emissions, encouraging investors and consumers to adopt lower-carbon alternatives.
• The market is divided into Product Types (Carbon Fibers, Special Graphite, Carbon Nanotubes, Graphene, Carbon Foams, and Others), Application Types (Aerospace & Defense, Electronics, Sports, Automotive, Construction, Energy, and Others), and Geography Types (Aerospace & Defense, Electronics, Sports, Automotive, Construction, Energy, and Others) (Asia-Pacific, North America, Europe, South America, and Middle East & Africa)
• By the year FY20, the worldwide governance of greenhouse gas (GHG) emissions will have undergone a significant transformation. In the forward, the Paris Agreement will serve as the new framework for the worldwide effort to tackle climate change. This is in stark contrast to the Kyoto Protocol, which took a different strategy. The Paris Agreement's new environment has significant ramifications for the voluntary carbon market, i.e. the voluntary purchase and retirement of carbon credits.

Advance Carbon Material:

• Advanced carbon nanomaterials, which include fullerene, graphene, and carbon nanotubes (CNTs), are regarded as the foundation of engineering and scientific innovation because of their diverse chemical, physical, and electrical capabilities. Different physical and chemical processes, respectively, are used to manufacture sustainable carbon materials. Additionally, manufacturing techniques are employed to produce enhanced carbon monoliths, which are components with desirable qualities.
• Sports, automobile, power, electronics, aerospace & military, and the built environment. A significant application market for advanced carbon materials is found in aerospace and military. Demand for aerospace & defense innovative carbon compounds is being driven by the ground-breaking design of flexible integrated circuits suitable for high temperature operations in military aircraft flying at high speeds. Furthermore, the design of wing boxes produced from composite materials is a result of the emphasis on producing lightweight aircraft. The need for sophisticated carbon compounds is increasing because to the fabric requirements of those light systems.

There are two main categories of carbon markets:

• Cap and Trade: Organizations that exceed the mandatory limit (cap) on greenhouse gas emissions can purchase excess allowances to bridge the gap or pay a fine under cap-and-trade.
• Voluntary Carbon Markets: All transactions of carbon offsets not purchased with the intent to surrender them into an active regulated carbon market, as well as offsets purchased with the intent to resell or retire them to fulfil carbon neutral or other environmental claims, are included in the voluntary carbon marketplace. Companies and individuals who assume responsibility for offsetting their own emissions, as well as entities that acquire offsets before emissions reductions are required by regulation, drive the voluntary market.
• Demand for voluntary carbon credits has risen quickly in recent years, more than tripling in the last three to four years and expected to reach 95 million tonnes of CO2 equivalent in FY20. Demand for all sorts of loans has increased, but especially for Nature Based Solutions.
  
• India is the world's third-largest producer of greenhouse gases and the world's second-most populous country. For the first time in forty years, India's overall emissions in FY19 were 132Mn. tonnes of carbon dioxide equivalent, and emissions are on the down. The country's per capita emissions remain low, at 1.94 tonnes of CO2 per capita, less than half of the global average of 4.2 tonnes of CO2 per capita. Over the last decade, India has developed into an economic powerhouse, with an average GDP growth rate of 6.7%. India's GDP is predicted to shrink by 4.5% to 10% in FY20 as a result of the COVID-19 economic downturn, although it is expected to rebound by FY25.

Growth Drivers:

• The rise in the need for carbon materials is mostly due to an increase in industrial applications, which is expected to boost market demand throughout the forecast period.

Key Trends:

Special Graphite to Dominate the Market

• Special graphite is utilized in a variety of applications, including silicon semiconductor manufacture, LED chips, lithium-ion batteries, polysilicon production, continuous casting dies and crucibles, and automotive vacuum pumps, to name a few.
• Extruded graphite, isotropic graphite, and moulded graphite are the three most commonly used varieties of special graphite. Isotropic graphite is the most generally used variety because to its high temperature and stress resistance.
• Single-story and lower-quality buildings use Category 1 flame retardant building materials, which contain 5% expandable graphite in their construction. Expandable graphite is increasingly being used in flame retardant building materials (up to category 4) that include 50 percent expandable graphite and are used in multi-story buildings and sky scrapers.

Peers:

• Peers of the company include Rain Industry, Indian Carbon Limited, Goa carbon Limited, Oriental carbon & chemicals ltd etc.