Indian government takes decisive steps on creating carbon credit markets
Exploring India’s Net-Zero Commitment: The Draft Green Credit Programme and Carbon Credit Trading Scheme of 2023
On 26th June and 28th June 2023, India propelled closer to its net-zero commitments as two groundbreaking events unfolded. The Ministry of Environment, Forests, and Climate Change introduced the ‘draft Green Credit Programme Implementation Rules, 2023’, and the Ministry of Power notified the Carbon Credit Trading Scheme, 2023. Join us in this comprehensive video where we explore the significance of these developments.
Carbon Credits and Carbon Markets: A Guide to Voluntary and Compliance Markets
M Ramesh takes a look at carbon credits and carbon markets in the first part of the video to discover how activities that reduce or remove greenhouse gas emissions entitle individuals or entities to carbon credits, which can be traded in a market-like fashion. He also distinguishes between the voluntary market, where environmentally conscious companies participate voluntarily, and the compliance market, where obligated entities adhere to emission reduction laws.
Carbon Trading Scheme of 2023: An Introduction to the Indian Carbon Market
Moving on to the second part, the focus is on the Ministry of Power’s notification introducing the Carbon Credit Trading Scheme, 2023. With the aim of establishing an Indian carbon market, this scheme employs a cap-and-trade mechanism. Learn about the crucial features, such as sector and obligated entity identification, emission intensity targets, and the role of the Bureau of Energy Efficiency as the scheme’s administrator.
Regulatory Framework of the Central Electricity Regulatory Commission (CERC) and the Green Credits Programme Implementation Rules, 2023
Discover the regulatory aspect managed by the Central Electricity Regulatory Commission (CERC) and the meta register maintained by the Grid Controller of India Ltd. The Draft Green Credits Programme Implementation Rules, 2023 talks about green credits, Unlike carbon credits, encompass a broader range of activities beyond greenhouse gas emissions reduction or removal. The eight activities outlined in the draft rules include tree plantation, water conservation, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, ecomark labeling, and building sustainable buildings.
While the Carbon Credit Trading Scheme operates under an obligatory framework, the Green Credits Programme is purely voluntary. The Indian Council of Forestry Research and Education acts as the administrator. With these groundbreaking notifications, India takes a decisive step towards establishing a market mechanism to meet its net-zero commitments. Stay informed about India’s progress in sustainability and its journey towards a greener future.