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India Launches Carbon Market in 4 Months
22 Mar
Summary
- India will start formal carbon market trading within four months.
- Companies can buy and sell credits to meet emission targets.
- This supports India's net zero by 2070 goal.
India's domestic carbon market trading will officially commence within the next four months, according to Union Power Minister Manohar Lal. This development is a significant step towards India's commitment to achieving net zero emissions by 2070.
The market will operate as a cap-and-trade system, enabling companies to purchase carbon credits from those with surplus allowances. This mechanism provides economic incentives for entities to reduce their carbon footprint.
This initiative is part of a broader strategy that includes regulatory tools and market-based mechanisms to curb emissions. India is also scaling up renewable energy capacity and implementing programs like smart metering and green open access.
The government has set greenhouse gas emission intensity targets for 490 obligated entities starting in 2026. The Minister highlighted the success of the Perform, Achieve and Trade (PAT) scheme, which has already led to substantial emission reductions and improved energy efficiency.
