Economy of greening

Under a new framework, India's carbon market is poised to tackle emissions and encourage green practices

- ASHOK KUMAR, SAURABH DIDDI ATIK MATIN SHEIKH

In a major stride toward combating climate change and meeting its ambitious climate goals, India has released two essential guidelines that will shape the future of the Indian Carbon Market (ICM). These are the Detailed Procedure for Compliance Mechanism and the Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agencies. Together, they are expected to catalyse India's efforts to price carbon emissions and facilitate the trade of carbon credits, bringing the country closer to its climate commitments.

India's climate strategy, as outlined in its Nationally Determined Contributions (NDCs) under the Paris Agreement on Climate Change, has not only met but surpassed several of its targets ahead of schedule. Signed in 2016, the Paris Agreement aimed to limit global temperature rise to below 2 degrees Celsius by the end of the century. India initially pledged to reduce the emission intensity of its GDP by 33-35 per cent by 2030 from 2005 levels. However, India achieved this target well ahead of time, highlighting its commitment to combating climate change. Furthering its ambitions, at the Conference of Parties (COP26) in Glasgow in 2021, India set even more aggressive goals. It vowed to achieve net-zero emissions by 2070, reduce the carbon intensity of its economy by 45 per cent by 2030, and generate 50 per cent of its electricity from non-fossil fuel sources within the same timeframe.

By already achieving some of these milestones ahead of schedule, India has demonstrated leadership in the global effort to address climate change.