India’s Carbon Market: The Need for Clarity and Operationalisation
Date: July 26, 2023Economies worldwide have come to recognize the pressing need to combat climate change by limiting carbon emissions. One effective approach to achieve this goal is by implementing a carbon market, where carbon credits can be traded, creating a financial incentive to reduce emissions. India's Ministry of Power (MoP) has recently introduced the Carbon Credit Trading Scheme (CCTS) 2023, which aims to establish a domestic market for tracking and trading carbon credits. While this move is a positive step towards India's compliance and voluntary carbon markets, there are still several critical questions that need clarity to operationalize the market effectively.The concept of carbon credits is not new in India, with existing domestic carbon compliance markets like Perform, Achieve and Trade (PAT) for tradable energy certificates (ESCerts) and the…
