The Indian government is planning to establish the Indian Carbon Market (ICM), a national framework to decarbonize the Indian economy by pricing greenhouse gas (GHG) emissions through trading of carbon credit certificates. The Bureau of Energy Efficiency, Ministry of Power, along with the Ministry of Environment, Forest & Climate Change, is developing a Carbon Credit Trading Scheme for this purpose.
A one-day stakeholder consultation on Accredited Carbon Verifiers under ICM was recently organized in New Delhi. Key stakeholders including Accredited Energy Auditors, Carbon/Energy Verifiers, and Sector Experts attended the event. The new carbon trading scheme will enhance the energy transition efforts, covering potential energy sectors in India.
To achieve this, GHG emissions intensity benchmarks and targets will be developed for these sectors, aligned with India's emissions trajectory as per climate goals. Trading of carbon credits will take place based on performance against these sectoral trajectories. The ICM will enable the creation of a competitive market that can provide incentives to climate actors to adopt low-cost options by attracting technology and finance towards sustainable projects that generate carbon credits.
The ICM will develop methodologies for the estimation of carbon emissions reductions and removals from various registered projects and stipulate the required validation, registration, verification, and issuance processes to operationalize the scheme. Monitoring, Reporting, and Verification guidelines for the emissions scheme will also be developed after consultation.
A comprehensive institutional and governance structure will be set up with specific roles of each party involved in the execution of ICM. Capacity building of all entities will be undertaken for up-skilling in the subject matter. A well-designed, competitive carbon market mechanism would enable the reduction of GHG emissions at the least cost, both at the level of entity as well as the overall sector and drive faster adoption of clean technologies in a growing economy like India.
The ICM will mobilize new mitigation opportunities through demand for emission credits by private and public entities. By accelerating the transition to a low carbon economy, the ICM will facilitate achieving the Nationally Determined Contributions (NDC) goal of reducing Emissions Intensity of the GDP by 45 percent by 2030 against 2005 levels.
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Technology is a useful servant, but a dangerous master, it was rightly said. Electronic devices have grown into an inevitable part of our daily lives.
