India’s Niti Aayog is developing a framework to establish carbon markets for clean energy, green hydrogen, biofuels, and clean transportation.
The Niti Aayog in India is creating a framework to set up carbon markets for renewable energy, green hydrogen, biofuels, and clean transportation. The action aims to promote carbon trading between polluting and green sectors and contribute to the funding of environmental and renewable energy projects.
According to the government, the expansion of carbon markets will boost economic activity and open up job opportunities.
Such markets may initially be voluntary, meaning that carbon credits will be issued, purchased, and sold voluntarily. However, over time, the government could set up a framework of regulations to create compliance markets, which compel industries to trade carbon credits and thus produce income.
According to a report presented at the COP27 climate conference held in Egypt last year, India had the highest growth rate in carbon emissions among the major global warming contributors. China and the European Union (EU) are expected to see reductions in emissions of 0.9% and 0.8%, respectively, while India’s emissions are predicted to rise by 6.0% and the US’s by 1.5%.
The United Nations Development Programme defines carbon markets as trading platforms where carbon credits are offered for sale and purchased. Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove greenhouse gas emissions.
Source: PTI
