🌍 India is stepping up as a global climate leader, and its carbon market policies are setting the stage for a sustainable future. 🌱
With the world racing to meet the goals of the Paris Agreement, India is not just participating—it’s innovating. The country has introduced groundbreaking regulatory frameworks to drive greenhouse gas (GHG) mitigation and carbon trading, positioning itself as a frontrunner in the global carbon market.
Here’s a deep dive into the three key policies shaping India’s carbon market landscape—and why they matter to you:
1. Bilateral/Cooperative Approaches under Article 6.2 of the Paris Agreement
Issuing Authority: Ministry of Environment, Forest and Climate Change (MoEFCC)
What’s the Big Deal?
Launched in February 2023, this policy focuses on bilateral and cooperative GHG mitigation projects that align with India’s national priorities and sustainable development goals. Think of it as India teaming up with other nations to tackle climate change while boosting its economy.
Eligible Activities:
- Renewable Energy Innovations: Solar thermal power, offshore wind, green hydrogen, and more.
- Cutting-Edge Tech: Fuel cells, sustainable aviation fuel, and energy-efficient technologies.
- Carbon Removal: Carbon capture, utilization, and storage (CCUS).
Why It Matters:
Projects under this framework can generate Internationally Transferred Mitigation Outcomes (ITMOs), which can be traded globally. This opens up massive opportunities for project developers and positions India as a hub for green innovation.
2. Activities under Article 6.4 of the Paris Agreement
Issuing Authority: Ministry of Environment, Forest and Climate Change (MoEFCC)
What’s the Big Deal?
Finalized in July 2024, this regulation establishes transparent and market-based protocols for GHG mitigation projects. It’s all about creating a robust system that ensures integrity while driving India’s Nationally Determined Contributions (NDCs).
Eligible Activities:
- Renewable Energy: Stored renewable energy, tidal energy, and ocean-based energy solutions.
- Green Materials: Green ammonia and other sustainable alternatives.
- Carbon Removal: CCUS and other removal technologies.
Why It Matters:
This framework not only attracts private investors but also ensures that India’s carbon market is dynamic and adaptable to emerging technologies. It’s a win-win for the planet and the economy.
3. Carbon Credit Trading Scheme (CCTS)
Issuing Authority: Ministry of Power (MoP)
What’s the Big Deal?
Announced in January 2024 and set for implementation by 2026, the CCTS is India’s bold move to create a national carbon credit market. It’s designed to incentivize industries to reduce emissions while rewarding voluntary participation.
Key Features:
- Carbon Credit Certificates (CCC): Bankable and tradable credits for obligated and non-obligated entities.
- Phased Rollout: Starting with energy, industry, and agriculture sectors.
- Governance: Overseen by the National Steering Committee for Indian Carbon Market (NSC-ICM).
Why It Matters:
The CCTS is a game-changer for industries, project developers, and investors. It creates a structured market for carbon credits, driving innovation and compliance while boosting India’s green economy.
India’s Carbon Market in a Nutshell
| Policy | Key Focus | Stakeholders |
|---|---|---|
| Article 6.2 | Bilateral/cooperative GHG mitigation | Project developers, international partners |
| Article 6.4 | Market-based mitigation projects | Developers, private investors |
| CCTS | National carbon credit trading | Industries, developers, verification agencies |
Why This Matters to You
India’s carbon market policies aren’t just about reducing emissions—they’re about creating opportunities. Whether you’re a business leader, investor, or sustainability enthusiast, these frameworks offer a roadmap for innovation, collaboration, and growth.
- For Businesses: Tap into new revenue streams by developing carbon offset projects.
- For Investors: Explore high-potential opportunities in renewable energy and green tech.
- For Everyone: Be part of a movement that’s shaping the future of our planet.
How ESGPro Mastery Institute Can Help
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- Comprehensive ESG Risk Assessments
- ESG Investment Banking Solutions
- Stakeholder Engagement Programs
- Customized ESG Transition Strategies
Ready to take the next step? Connect with us at info@esgproinvest.com or explore our insights at esgproinvest.com.
Join the Movement
India’s carbon market policies are more than just regulations—they’re a call to action. Let’s work together to build a sustainable future.