With the introduction of the carbon credit trading scheme, India is taking significant steps towards addressing climate change.
The Ministry of Power has introduced the Carbon Credit Market Scheme in order to enhance the trading of carbon credits within the country. This initiative follows closely after the government’s release of a preliminary document aimed at establishing a green credits market in India.
In a recent gazette notification, the ministry granted official approval for the creation of India’s inaugural domestically regulated carbon market. The scheme also mandates the establishment of a National Steering Committee, responsible for overseeing and governing the operations of the Indian carbon market.
Members of the Steering Committee
The management of the steering committee will be jointly handled by the Ministry of Power (MoP) and the Ministry of Environment Forest and Climate Change (MoEFCC), along with representation from other ministries. An empowered committee will soon provide guidance on criteria for issuing carbon emissions reductions, the validity of issued reductions, and comprehensive application procedures. “This will establish a systematic approach to achieve India’s nationally determined contribution (NDCs) by 2030,” explained Inderjeet Singh, a Partner at Deloitte India.
Responsibilities of the Committee
The National Steering Committee will assume the responsibility of proposing and finalizing procedures to establish the Indian carbon market as an institutionalized entity. It will also be tasked with setting specific greenhouse gas emission targets for obligated entities, providing guidelines for trading carbon credit certificates outside of India, and issuing carbon credit certificates.
Additionally, the committee will be involved in developing processes and conditions for the crediting period, renewal, or expiry of carbon credit certificates.
Monitoring the operations of the Indian carbon market, forming necessary committees or working groups related to the market, and fulfilling any other functions assigned by the central government are also part of the committee’s mandate.
According to Manish Dabkara, Chairman and MD of EKI Energy Services and President of CMAI (Carbon Market Association Of India), the recently announced carbon credit trading scheme will mark the beginning of a new era by revitalizing emissions trading. The Government of India, in alignment with its commitment to the Paris Agreement and pursuit of its NetZero goal, has collaborated with the Bureau to introduce the Carbon Credit Trading Scheme (CCTS).
This scheme aims to institutionalize and facilitate the functioning of the Indian Carbon Market (ICM). It involves a compliance process wherein specific industries and organizations will have emission targets set for them, and if they surpass these targets, they will receive credit certificates.
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