India plans carbon credit market for energy, steel and cement

Prime Minister Narendra Modi is expected to launch the platform at the Independence Day celebrations on August 15. It has been in the works since March, when consultations with ministries and firms began.

The market would first be limited to difficult-to-abate industries, allowing players to sell credits obtained through reducing emissions.

One of the objectives is to ensure that state-owned energy companies such as Oil & Natural Gas Corp, Indian Oil Corp, and NTPC, as well as steel and cement companies benefit from planned investments in carbon-capture projects.

At the COP26 meeting in Glasgow late last year, India, the world's third-largest emitter, startled observers by declaring a plan to attain net zero emissions by 2070. While this is a decade behind China, the South Asian economy is less developed and has larger climatic issues. As a first step toward its aim, the country intends to reduce 1 billion tonnes of emissions by 2030.

India's proposed market is similar to one in China, which implemented a required trading system for all large power plants last year. However, the market has been hampered by data collection delays and issues, resulting in only mediocre buying and selling of allowances.

As part of its climate ambitions, India plans to introduce methanol-blended fuels into land and marine transportation, create additional carbon capture projects, and stimulate the use of electric vehicles.

See also:
India to invest $20 trillion to achieve net zero by 2070
Govt’s $10-bn plan to curb emissions