Instruments & Regulations

Centre may allow overseas trading of carbon credits with other countries

Arjun Dutt

Notable because

This is an indication that India is willing to engage with other countries for trading carbon credits. However, it is unclear whether such engagement would proceed solely through Article 6 of the Paris Agreement or if India is open to linking the domestic carbon credit trading scheme (CCTS) with international markets. The interoperability of the CCTS with Article 6 could further streamline the flow of capital from international carbon markets.  

What to look out for in the months ahead

Which sectors will the emerging CCTS cover? Will the rules governing the CCTS provide for interoperability with Article 6 and international cap and trade systems?