(MENAFN- KNN India)
New Delhi, Aug 1 (KNN) In a significant move towards addressing climate change, India is preparing to establish its domestic carbon market in the coming months.
This development has caught the attention of international observers and corporations alike, signalling a new era in the country's approach to emissions reduction.
Dirk Forrister, President and CEO of the International Emission Trading Association (IETA), revealed that Indian government officials are in the final stages of crafting regulations for this market.
"We are waiting for details as to what the targets would look like, and what flexibility will be affordable," Forrister stated, highlighting the anticipation surrounding the upcoming framework.
The Indian government has been meticulous in its approach, studying carbon market models from various countries, including Europe, Chile, Colombia, California, and South Africa.
This thorough examination, coupled with participation in study programs led by the World Bank and the Asian Development Bank, underscores India's commitment to creating a robust and effective carbon trading system.
One of the key strengths of the proposed market lies in its foundation on the existing "Perform, Achieve and Trade" program. This evolution is expected to encompass several heavy industries, including power, chemicals, fertilizers, and steel, among others.
However, the exact size and scope of the market remain uncertain until the government releases detailed regulations.
Notably, large Indian corporations with global assets have already shown commitment to reducing emissions. This proactive stance is partly driven by demands from European customers for cleaner products, illustrating the global interconnectedness of climate action.
The Indian government faces a delicate balancing act as it seeks to meet the enormous power needs of its population while simultaneously attracting investments in renewables and energy efficiency.
To this end, officials have identified target areas for foreign investments, considering the approval of carbon credits for exports into international markets.
Forrister emphasised India's vast potential in reducing carbon emissions across various sectors, from nature-based solutions to industrial production and electricity generation. However, he also acknowledged the challenges ahead, particularly in terms of technology costs and domestic requirements.
(KNN Bureau)
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