Indian Government Develops Carbon Credit Trading Scheme to Decarbonize the Economy

Indian Carbon Market (ICM) to establish a national framework for pricing greenhouse gas emissions and developing a competitive market that can provide incentives to adopt low-cost options.

The Indian government is planning to develop a national framework to decarbonize the Indian economy through the Indian Carbon Market (ICM).

The ICM will establish a carbon credit trading scheme to price greenhouse gas emissions, which will cover potential energy sectors in India and align with India’s emissions trajectory as per climate goals.

A one-day stakeholder consultation was recently held in New Delhi to discuss the development of Accredited Carbon Verifiers under ICM.

The ICM will also develop methodologies for the estimation of carbon emissions reductions and removals from various registered projects, stipulate required validation, registration, verification, and issuance processes to operationalize the scheme and develop monitoring, reporting, and verification (MRV) guidelines for the emissions scheme.

A comprehensive institutional and governance structure will be set up with specific roles for each party involved in the execution of ICM, and capacity building of all entities will be undertaken for up-skilling in the subject matter.

The ICM will facilitate the achievement of India’s enhanced climate targets and accelerate the transition to a low-carbon economy.

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