In an effort to align with its ambitious greenhouse emissions reduction goals, India is poised to establish carbon emission reduction targets for four pivotal industries, reports Reuters. As reported by two undisclosed government sources speaking to Reuters, India is planning to introduce carbon emission intensity standards and three-year reduction targets for companies in key sectors such as petrochemicals, iron and steel, cement, and pulp and paper.
The officials also revealed that trading in the carbon market is slated to commence in April 2025, with these industries anticipated to be the first participants. This market will enable companies to trade carbon credits to meet their emission targets, with those exceeding their goals earning carbon credits for sale to companies falling short.
These initiatives, set to begin in 2024-25, will align with India’s commitment to reduce greenhouse emissions relative to its Gross Domestic Product (GDP) and its pledge to achieve net-zero emissions by 2070. The proposed carbon market is distinct from those in developed countries, emphasizing setting sector-specific emissions reduction targets rather than tradable permits. The regulations and targets for these industries are expected to be unveiled by December this year.
India has already established a trading market for certificates in above-target energy savings across 13 sectors. Additionally, a carbon market legislation was passed by the Indian Parliament in December of the previous year.