According to Union Minister for New and Renewable Energy (MNRE) R K Singh, the government is making India a carbon credit market that can be used to reach India’s Nationally Determined Contribution (NDC) goals.
“What we will put in place is the system of carbon market. There is already some sort of carbon market available here. We have renewable energy certificates (REC) that are carbon credits. We also have energy-saving certificates, which are carbon credits. Now we will combine those into one carbon credit, and it will be sold,” he said to reporters at the curtain raiser of the ‘Fifth Assembly of The International Solar Alliance’ event.
The country will use the carbon credits that India generates first to achieve its NDC goals. He said that the remaining carbon credits can be exported.
Singh stated that India would like to keep carbon credits to itself as to achieve it’s NDC but we are interested in selling anything beyond what we required. Other countries can also look forward to large quantities of carbon credits available in India. The Minister stated that India is also diversifying its supply chain in solar manufacturing.
“We have taken steps in order to diversify our supply chains. A PLI was created to manufacture polysilicon modules. Another PLI will be developed that will allow us to manufacture 40 GW of polysilicon cells to modules. Singh stated that we are creating mechanisms to diversify supply chains, which ultimately will show the world’s move toward energy transition.”
Recent submissions of updated NDC by India under the Paris Agreement to the UN Framework Convention on Climate Change emphasizes the important step towards India’s long-term goal of becoming net-zero in 2070.