Indian energy firms to establish a carbon market

India, one of the biggest emitters of greenhouse gases worldwide, wants to achieve net-zero emissions by 2070.

The importance of a strong carbon trading market is emphasised by Prime Minister Narendra Modi's desire for India to develop into an industrial powerhouse while also reducing emissions by 60 million tonnes annually by 2030.

"A domestic market that is formed in unison and close consultation with relevant industry stakeholders can tremendously accelerate the country's transition to become carbon neutral," Manish Dabkara, president of the newly formed Carbon Market Association of India, said.

EKI Energy Services, which conducts business in carbon offsetting, is owned by Dabkara.

In addition to other companies, the association includes Virescent Infra, a global private equity leader owned by KKR, and Hero Future Energies, Ayana Renewable Power, among others.

According to Dabkara, it aims to serve as a middleman between the government and business to facilitate the trade of carbon credits, which would indicate increased growth that is carbon neutral.

A bill to establish carbon trading, the Energy Conservation (Amendment) Bill 2022, was approved by the lower house of parliament in August.

Government and private organisations can obtain carbon credits under a carbon trading scheme by lowering their greenhouse gas emissions. Markets allow for the purchase and sale of identical credits.

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