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.
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?