Today is Friday, November 3, 2023.
India finalized the framework for its Carbon Credit Trading Scheme (CCTS) for the Indian Carbon Market (ICM) last June 28, 2023.
These efforts relate to an amendment to the original Energy Conservation 2001 Act, that through additional clauses, authorized the establishment of a domestic carbon credit trading scheme.
The ultimate objective of the CCTS is to decarbonize the Indian economy by pricing GHG emissions through the trading of carbon credits certificates (CCC). Initially, these CCC will be domestically tradeable between companies and individuals.
India’s Power Ministry circulated a draft CCTS last March, contemplating both compliance and voluntary carbon markets (CCM and VCM, respectively). The final version came with some changes, being a significant one the relegation of the VCM of the ICM to a later stage.
In paralel to CCTS developments, draft rules were also proposed for a separate Green Credit Program, whereby green credits could come from activities such as sustainable agriculture, forestry, waste management, building construction and water management practices. Click here for the press release by the Press Information Bureau by the Indian Government, from where we quote:
"Green Credit Program is an innovative market-based mechanism designed to incentivize voluntary environmental actions across diverse sectors, by various stakeholders like individuals, communities, private sector industries, and companies ... To obtain Green Credits, individuals and entities must register their activities through the central government's dedicated app/website. The Administrator will verify the activity through a designated agency, with self-verification for small projects. Once verification is complete, the Administrator will grant a Green Credit certificate which will be tradable on the green credit platform.".
As you will read, there is also reference to The Ecomark Scheme. It provides accreditation and labelling for household and consumer products that meet specific environmental criteria, ensuring minimal environmental impact, while maintaining quality standards as per Indian norms.
Click here for the The Gazette of India official publication about this interesting Green Credit Program (and if you don't read Hindi, don't be surprised. There is an English version scrolling down the document).
And at the image below to read more about India's Carbon Credit Trading Scheme.
