The formation of India’s first domestic regulated carbon market has been approved by the Ministry of Power, and a National Steering Committee will be formed to govern it and have direct oversight over its functioning.
The approval was announced through a gazette notification last week, just days after the government released a draft document for establishing a national green credits market.
“This will ensure a structured approach towards meeting the nationally determined contribution (NDCs) of India by 2030,” Inderjeet Singh, Partner at Deloitte India, was quoted as saying by Business Today.
The steering committee will be jointly managed by the Ministry of Power and the Ministry of Environment Forest and Climate Change, along with representatives of other ministries, and will provide application procedures as well as guidance on issuance criteria and validity of issued emission reductions, specific greenhouse gas (GHG) emission targets for the obligated entities, the trading of carbon credit certificates outside India and other relevant topics, shortly.
Manish Dabkara, President of the Carbon Market Association Of India (CMAI), praised the government for the move, saying it is in line with India’s commitments under the Paris Agreement and its net zero goal.
“It [the scheme] involves a process for compliance in which emission objectives will be established for specific industries and organizations, surpassing which they will receive credit certificates,” he was quoted as saying.
The finalization of the carbon market initiative marks a new era of revival for the trading of emissions in India through the establishment of a domestic registry followed by integration with power exchanges, Business Today concluded.