Power, environment ministries to develop carbon credit trading scheme for decarbonisation
Notable because
India’s carbon credit trading scheme reflects its dedication to decarbonisation and clean energy sources, representing a significant step towards establishing a domestic market. Drawing from experiences such as the Clean Development Mechanism and the voluntary market, the government has taken informed steps to make this semi-voluntary initiative a reality. While it will require time to activate the market fully and set mandatory targets, it demonstrates India’s proactive approach and commitment to addressing climate change.
What to look out for in the months ahead
There are three ways of pricing carbon: establishment of a domestic carbon tax, use of an emissions trading system, and application of an import tariff on the carbon content.
How is India planning to price carbon emissions?