India Forms Panel for Carbon Trading Rules
The Indian government has taken a significant stride towards achieving its net-zero goal by 2070 as it establishes a national steering committee to develop and finalise regulations for the evolving Indian carbon market.
The committee, led by the Secretary of the Ministry of Power and co-chaired by the Secretary of the Ministry of Environment, Forest, and Climate Change, aims to regulate the functioning of the carbon trading market in India.
Comprising members from various ministries, including Finance, Power, Environment, Renewable Energy, Steel, Coal, Chemicals, Fertilisers, and Petroleum, the committee will play a crucial role in institutionalising the Indian carbon market and defining greenhouse gas emission targets for obligated entities. With the recent release of a draft document for a green credits market, India's commitment to sustainable development and meeting climate goals is evident.
This move is expected to foster a proactive compliance and enforcement mechanism, leading to reasonable price discovery and a dynamic domestic emission trading market. By mobilising the market, investors will be encouraged to invest in carbon reduction technologies and projects, accelerating the country's decarbonisation efforts.
The committee's responsibilities include formulating procedures for the Indian carbon market, recommending trading guidelines for carbon credit certificates outside India, and advising the bureau on issuing carbon credit certificates.
The central electricity regulatory commission will be entrusted with regulating the Indian carbon market, while a bureau, supported by technical committees, will oversee the compliance mechanism, identify emission reduction potential in various sectors, and set trajectory and targets for entities under compliance.
Moreover, the bureau will establish eligibility criteria for accrediting carbon verification agencies based on the national steering committee's recommendations. As India strives to make significant strides towards sustainability, the establishment of this committee marks a pivotal moment in the nation's journey towards a greener and more environmentally conscious future.
Source: Fortune India