Prajavartha Online Telugu News
-Laying the Foundation for a Robust Carbon Market
-New Guidelines: Compliance and Verification Frameworks
-Looking Ahead: Building a Sustainable Future
Hyderabad, Neti patrika prajavartha :
In a significant step toward combating climate change, India has introduced two critical guidelines by the Bureau of Energy Efficiency (BEE). These guidelines the Detailed Procedure for Compliance Mechanism and the Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agencies will shape the future of the Indian Carbon Market (ICM) and accelerate the country’s climate goals. To disseminate among the stakeholders (including industries such steel, cement, textile, paper etc and verification agencies) Bureau of Energy Efficiency organised 1st National workshop in Hyderabad and next workshops are planned for Bhubaneshwar, Mumbai and Chandigarh.
The Indian Carbon Market is central to India’s strategy for reducing greenhouse gas (GHG) emissions as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement. The new guidelines aim to facilitate the trade of carbon credits, allowing companies to offset their emissions by purchasing credits from organizations that have exceeded their reduction targets. This framework is designed to ensure that India stays on track to meet its goal of reducing the emission intensity of its GDP by 45% by 2030 and reaching net-zero emissions by 2070,
India’s commitment to carbon trading was reinforced with the amendment to the Energy Conservation Act in 2022, which enabled the establishment of the Carbon Credit Trading Scheme (CCTS). This scheme provides the regulatory backbone for carbon trading, aligning India with global carbon market practices. The CCTS operates through two mechanisms: compliance and offsets.
The compliance mechanism, targeting high-emission industries, mandates specific Greenhouse GasEmission Intensity (GEI) targets. Companies that reduce their emissions beyond these targets earncarbon credits, while those failing to meet the goals must purchase credits. The offset mechanism allowsother sectors, including renewable energy projects, to voluntarily participate in the market, expandingthe pool of carbon credits.
The Detailed Procedure for Compliance Mechanism outlines how companies can monitor, report, and verify their GHG emissions and the process for earning carbon credits. This transparent system ensures that businesses can trade credits fairly, rewarding those that outperform emission-reduction targets andallowing others to meet their obligations cost-effectively.
The Accreditation Procedure establishes the standards for Accredited Carbon Verification Agencies (ACVs), which will audit companies’ emission reduction claims. These third-party agencies ensure theaccuracy and fairness of the carbon credit system by verifying the legitimacy of reported reductions,promoting trust and accountability in the ICM.
The BEE, responsible for overseeing the ICM, is working to set industry-specific emission targets and develop an ICM Portal, a digital platform for carbon credit trading. The collaboration with the Central Electricity Regulatory Commission (CERC) is also crucial in establishing regulations for carbon trading. This initiative not only supports India’s climate commitments but also offers businesses a pathway to adopt greener technologies in a cost-effective manner. By encouraging industries to participate in the carbon market, India is fostering a sustainable and economically viable transition to alow-carbon economy
Telangana SDA ready to propagate the procedures of carbon credit Trading scheme…….
Vavilla Aneela Managing Director.. TSREDCO also acting as State designated Agency of TelanganaState informed during the work shop that SDA will initiate effective Communication Strategy with the support of BEE to disseminate the information to designated Consumers/Stakeholders about the various provisions of India’s Carbon Credit Trading Scheme 2023 which was notified by the GOI under Energy Conservation Act 2001. The said notification underlines the necessary framework and the roles of Stakeholders for the development and functioning of the ICM
Responding to presentation made by Shri Saurabh Didi Director. BEE, representatives of various industries participated in the workshop expressed confidence that the southern states, including Andhra Pradesh, Kerala, Karnataka, and Tamil Nadu particularly Telangana State, which has a major industrial base and is known for adopting advanced technologies will play a pivotal role in implementing the Indian Carbon Market (ICM) with the support of stakeholders and major industries.
