India unveiled a draft plan for a carbon credit trading scheme, seeking input from stakeholders until April 14th, as part of the country's efforts to establish a carbon credit market. The Energy Conservation (Amendment) Bill, passed in December, authorises the Indian government to create carbon credit trading markets. The proposed scheme outlines the structure of the Indian carbon credit market, both for voluntary and compliance trading. The market will be administered by a governing board composed of representatives from various ministries.
Athirappilly, Kerala, India.
According to the draft, the board will recommend procedures and guidelines for the market and create methodologies for voluntary carbon credit trading, including guidelines for selling carbon credit certificates to international buyers. Another provision of the bill empowers the central government to specify a carbon trading scheme, in consultation with the Bureau of Energy Efficiency, to help accredit an agency to oversee validation or verification activities related to carbon credit trading.
Read more: What are the benefits of the booming carbon credits market?
The Indian government will issue carbon credit certificates to registered entities or authorised agencies, with each certificate representing a reduction or removal of the equivalent of 1 tonne of carbon dioxide (CO2). The ministry's draft proposal also includes the formation of the Indian Carbon Market Governing Board, which will be responsible for overseeing the market's administrative and regulatory functions.
India aims to reduce carbon emissions by 1 billion tonnes by 2030 from 2005 levels and fulfil 50% of its energy needs from renewable sources. Last year, the Indian Energy Exchange established the International Carbon Exchange, a platform for market participants to purchase and sell voluntary carbon credits at competitive prices.
There is an increased awareness of the need for regulated and transparent mechanisms within the carbon credit market. This way, the market can develop sustainably and foster real and much-needed change in how we protect nature. At DGB Group, we believe in following strict industry guidelines to manage our global large-scale nature projects. That way, we can ensure the benefit of all stakeholders involved and, most of all, that nature prospers.
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