Govt comes out with draft rules of Green Credit programme

Arjun Dutt

Notable because

While market mechanisms pertaining to emissions abatement already exist (REC, PAT, and the emerging CCTS scheme), this is the first such mechanism that targets broader environmental attributes. This can potentially be a starting point for a broader structured push for using fiscal and financial regulation to advance sustainability.

What to look out for in the months ahead

Will the proposed voluntary nature of the demand of these green credits be sufficient to generate demand?

Will financial regulators issue complementary regulation that targets broader environmental considerations than climate?