India Planning Carbon Credit Market for Energy, Steel and Cement

India is planning to start a carbon trading market for major emitters in the energy, steel and cement industries, as part of its efforts to hasten the transition to cleaner fuels.

The platform is likely to be announced by Prime Minister Narendra Modi at Independence Day celebrations on Aug. 15, according to people with the knowledge of the plan. It’s been in the works since March, when consultation with ministries and companies began, said the people who asked not be named because discussions are private.

The Prime Minister’s Office and government think tank NITI Aayog didn’t immediately respond to emails seeking comment.

The market would initially be limited to hard-to-abate sectors, allowing participants to trade credits earned from cutting emissions, the people said.

One of the goals is to ensure state-owned energy firms like Oil & Natural Gas Corp., Indian Oil Corp. and NTPC Ltd., as well as steel and cement companies, can benefit from planned investments in carbon-capture projects, they said. 

source: Bloomberg