Revenue Generation and Decarbonization

India's CCTS as a Model for Climate Action

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By introducing a mandatory compliance mechanism and a voluntary offset system, the CCTS aims to help India meet its climate targets and support a low-carbon transition. The implementation of this scheme will help India contribute to the achievement of Sustainable Development Goals (SDGs), while positioning the country as a global leader in climate action, Nishtha Singh and Alistair Ritchie write.

The implications of rising greenhouse gas (GHG) emissions on social and economic dimensions of daily life are yet to be fully understood. Climate change is driving humanity into uncharted territory, with extreme weather events becoming increasingly prevalent. These changes impact communities differently and have cascading effects on various sustainable development goals (SDGs).

The social and economic costs of climate change, compounded by GHG emissions, are immense. Governments face increased expenditures due to damage from extreme weather, alongside revenue losses. Carbon pricing emerges as a pivotal mechanism to address climate change, creating financial incentives to adopt low-carbon solutions. A well-crafted carbon pricing policy not only drives decarbonization in a cost-effective way but also generates significant government revenue. This revenue can be allocated to support stakeholders transitioning to a sustainable, low-carbon economy and fund climate-resilient and sustainable development.

India's Carbon Credit Trading Scheme