EKI Energy Services Applauds Biden-Harris Administration’s New Principles for High-Integrity Voluntary Carbon Markets

EKI Energy Services Ltd., a leading global developer and supplier of carbon credits, has welcomed the Biden-Harris Administration’s announcement of new principles for high-integrity voluntary carbon markets. This initiative, accompanied by a Joint Statement of Policy, represents a significant step towards advancing credible and ambitious climate action.

The newly endorsed principles underscore the U.S. government’s commitment to fostering responsible participation in voluntary carbon markets. By setting clear incentives and guardrails, these principles aim to ensure that carbon markets drive meaningful climate action while promoting economic opportunity.

EKI Energy Services, dedicated to promoting sustainability and combating climate change, recognizes the importance of high-integrity carbon markets in accelerating decarbonization efforts. The company believes these principles will strengthen market integrity, restore stakeholder confidence, and unlock the full potential of voluntary carbon markets to drive climate ambition.

The Indian government has also taken proactive measures to combat climate change. The Energy Conservation (Amendment) Act of June 2022 granted regulators the authority to develop policies for India’s national emission trading system. In 2023, India introduced the Carbon Credit Trading Scheme (CCTS), encompassing both compliance and voluntary sectors. The CCTS was further amended in June 2023 to include the Offset Market, allowing non-obligated entities to participate and opening new opportunities for decarbonization projects.

Mr. Manish Dabkara, Chairman & MD of EKI Energy Services Ltd., praised the Biden-Harris Administration’s proactive steps, stating, “These principles align with our commitment to transparency, accountability, and environmental stewardship. By establishing robust standards and ensuring the credibility of carbon credits, we can mobilize private finance at scale for projects that reduce and remove greenhouse gas emissions.”

Mr. Naveen Sharma, Director of Global Carbon Sales and Origination at EKI Energy Services, also expressed support, saying, “These new principles provide a solid framework for fostering transparency and accountability in carbon credit trading, which is essential for driving meaningful climate action.”

Voluntary Carbon Markets (VCMs) have significant potential to combat climate change but face challenges in ensuring the integrity and credibility of carbon credits. The new principles aim to address these challenges by establishing robust standards for carbon credit supply and demand, improving market functioning, and ensuring fair treatment of all participants. By prioritizing measurable emissions reductions, promoting transparency, and fostering market integrity, these principles will support the responsible development of VCMs and help drive ambitious climate action.

Morgan Stanley Research estimates that the Voluntary Carbon Market could grow to about $100 billion by 2030 and around $250 billion by 2050. The new principles from the Biden-Harris Administration are expected to bolster this projected growth, boosting investor confidence and increasing participation in carbon credit trading.

The Administration’s announced Principles for Responsible Participation emphasize:

• Ensuring carbon credits and their associated activities adhere to credible atmospheric integrity standards, reflecting genuine decarbonization efforts.
• Encouraging credit-generating activities to avoid environmental and social harm while supporting co-benefits and transparent sharing of benefits.
• Urging corporate buyers to prioritize measurable emissions reductions within their own value chains when utilizing credits.
• Advocating for the public disclosure of the nature of both purchased and retired credits by credit users.
• Insisting that public claims made by credit users accurately represent the climate impact of retired credits and are based solely on credits meeting high integrity standards.
• Encouraging market participants to contribute to initiatives aimed at enhancing market integrity.
• Calling upon policymakers and market participants to facilitate efficient market participation and reduce transaction costs.

With these principles, the Biden-Harris Administration aims to enable VCMs to fulfill their potential, driving significant progress in global climate action.