The Carbon Trade

The government’s focus on creating a framework for trading carbon credits can help India Inc. And the country reduce its greenhouse gas emissions, while driving innovation and tech advancements

- NIDHI SINGAL

WITH A VIEW to achieving net-zero carbon emissions by 2046, energy major Indian Oil Corporation had announced in August 2022 its plans to invest ₹2 lakh crore in phases, including purchasing carbon credits. Separately in September 2022, Indian energy sector behemoth NTPC was looking for a professional well-versed in carbon trading, who also had experience of working with carbon markets, carbon credits, carbon tax and emissions trading schemes, ESG, carbon neutrality, etc. While these are just two examples, there are many such entities that are working on such sustainability measures. But why the sudden interest?

As temperatures and greenhouse gas (GHG) emissions rise, sustainability has become a major focus area not just for regulators, but even for investors, community stakeholders, consumers, and more importantly industries, all worrying about the devastating impact of emissions on the environment. This has spurred everyone— from legacy businesses to start-ups, and regulators to policymakers—to take a serious note of their collective carbon footprint. But as some of the largest contributors to global GHG emissions, many industrial firms that are required to meet certain emission reduction targets, either by law or due to their own policies, are struggling to eliminate or even lower their carbon footprint.