The scheme also necessitates the formation of a National Steering Committee, which will govern and have direct oversight over the functioning of the Indian carbon market
To boost the trading of carbon credits in the country, the Ministry of Power has notified the Carbon Credit Market Scheme. This development comes within days of the government releasing a draft document for establishing a green credits market in India.
Through a gazette notification last week, the ministry approved the formation of India’s first domestic regulated carbon market. The scheme also necessitates the formation of a National Steering Committee, which will govern and have direct oversight over the functioning of the Indian carbon market.
“The steering committee will be managed by the Ministry of Power (MoP) along with the Ministry of Environment Forest and Climate Change (MoEFCC) along with representation of other ministries. The empowered committee will soon issue guidance on issuance criteria, validity of issued emission reductions along with detailed application procedures.
“This will ensure a structured approach towards meeting the nationally determined contribution (NDCs) of India by 2030,” said Inderjeet Singh, Partner at Deloitte India.
The National Steering Committee will be responsible for providing recommendations for the formulation and finalising of procedures for institutionalising the Indian carbon market, specific greenhouse gas emission targets for the obligated entities, guidelines regarding the trading of carbon credit certificates outside India, to issue carbon credit certificate. It will also be involved in developing the process or conditions for crediting period or renewal or expiry of a carbon credit certificate, to monitor the functions of the Indian carbon market, constitute any committee or working group as required in connection with Indian carbon market; and, any other functions assigned to it by the central government.
As the recently notified carbon credit trading scheme will usher in a new era to revive the trading of emissions through the establishment of a domestic registry followed by integration with power exchanges, Manish Dabkara, Chairman and MD EKI Energy Services and President CMAI (Carbon Market Association Of India, says, “Taking a cue from its Paris Agreement commitment and chasing its NetZero goal, Government of India in consultation with the Bureau has released the Carbon Credit Trading Scheme (CCTS) for the institutionalisation and functioning of the Indian Carbon Market (ICM). It involves a process for compliance in which emission objectives will be established for specific industries and organisations, surpassing which they will receive credit certificates.”
Source: PTI
