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4 Factors To Influence Our Emissions Trading System
The Morning Standard
|July 31, 2024
ONE of the much-anticipated news from this year's budget was the financial outlay the Indian government gave to existing clean energy policies such as the promotion of green hydrogen, electric vehicles and rooftop solar systems.
However, designing policy instruments that could potentially generate additional revenue for the government to contribute to climate finance while effectively reducing emissions is equally critical.
India's carbon credit and trading scheme (CCTS) is one such policy instrument that will start its pilot phase this year. We delve into the four factors influencing India's carbon price and emissions trading system.
The government launched the Indian carbon market in 2023. It consists of setting up a voluntary or offset market and the national emission trading scheme, dubbed the CCTS. The scheme obligates entities in chosen sectors to reduce their carbon emissions. After a transition period from 2024 to 2026 consisting of select entities, it will become fully operational in 2027.
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