New Delhi: The government has planned to develop the Indian Carbon Market (ICM) where a national framework will be established with an objective to decarbonise the Indian economy by pricing the Green House Gas (GHG) emission through trading of the Carbon Credit Certificates, the Ministry of Power said in a statement on Thursday. For this purpose, Bureau of Energy Efficiency, Ministry of Power, along with the Ministry of Environment, Forest and Climate Change are developing the Carbon Credit Trading Scheme, it added.
"A one-day ‘Stakeholder Consultation on Accredited Carbon Verifiers under ICM’ was organised in New Delhi on Thursday with participants drawn from key stakeholders including Accredited Energy Auditors, Carbon/Energy Verifiers, Sector Experts etc," the statement added.
As per the statement, "the Carbon Credit Trading Scheme will enhance the energy transition efforts with an increased scope that will cover the potential energy sectors in India. For these sectors, GHG emissions intensity benchmark and targets will be developed, which will be aligned with India’s emissions trajectory as per climate goals. The trading of carbon credits will take place based on the performance against these sectoral trajectories. Further, it is envisaged that there will be a development of a voluntary mechanism concurrently, to encourage GHG reduction from non-obligated sectors."
The statement also said that India has been at the forefront of climate action to meet climate goals through its ambitious Nationally Determined Contributions (NDC). To facilitate the achievement of India’s enhanced climate targets and to meet future goals, the government is developing the ICM. "By accelerating the transition to a low carbon economy, the ICM will help in achieving the NDC goal of reducing the Emissions Intensity by 45 percent by 2030," it added.
“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. It can be a vehicle for mobilizing a significant portion of investments required by Indian economy to transition toward low-carbon pathways,” said Abhay Bakre, DG, BEE. He added that "this consultation will give specific guidance for developing MRV process and define eligibility criteria for Accredited Carbon Verifiers (ACVs)."