To boost the trading of carbon credits in the country, India’s Ministry of Power has notified the Carbon Credit Market Scheme. Within just a few days ago, the government releasing a draft document for establishing a carbon credits market in India.
Through a gazette notification released on June 30, the ministry approved the formation of India’s first domestic regulated carbon market. The scheme also shows that it will set up a National Steering Committee, which will govern and have direct oversight over the functioning of the carbon market.
“The steering committee will be managed by the Ministry of Power along with the Ministry of Environment Forest and Climate Change along with representation of other ministries. The empowered committee will soon issue guidance on issuance criteria, validity of issued emission reductions along with detailed application procedures.
“This will ensure a structured approach towards meeting the nationally determined contribution of India by 2030,” said Inderjeet Singh, Partner at Deloitte India.
The Committee will be responsible for providing recommendations for the formulation and finalizing of procedures for institutionalizing the carbon market, specific greenhouse gas emission targets, guidelines regarding the trading of carbon credit certificates outside India, to issue carbon credit certificate.
It will also be involved in developing the process or conditions for crediting period or renewal or expiry of a carbon credit certificate, to monitor the functions of the Indian carbon market, constitute any kinds of working group as required, and other functions assigned to it by the central government.
India is one of the largest issuers of carbon credits in the world. Between 2010 to 2022, India issued 278 million credits in the Voluntary Carbon Market, accounting for 17% of global supply, according to a report by S&P Global Commodity Insights.
Though the National Carbon Market is focused on domestic compliance and voluntary players, concerns persist over how the country will regulate carbon credits being exported in international voluntary carbon market.