The Advent of Indian Domestic Emission Trading Scheme – A New Era of Carbon Markets in the Paris Agreement
EKI Energy Services Ltd. (EKI) welcomes the amendments passed by the Lok Sabha (Lower House of Indian Parliament) to the Energy Conservation (EC) Act 2022.
August 12, 2022. By News Bureau
The development is a timely opportune for the country's carbon credit market and we are hopeful that it will get final approvals by Rajya Sabha (Upper House of Indian Parliament) & President of India by the end of this year. This amendment act has unlocked new market potentials for the Indian seller of carbon credits.
The industry sellers will now have five different markets to choose from for the sale of their credits. These include -
Option 01: Domestic Compliance Carbon Markets
Option 02: Domestic Voluntary Carbon Markets
Option 03: Article 6.2 of the Paris Agreement Carbon Markets
Option 04: Article 6.4 of the Paris Agreement Carbon Markets
Option 05: International Voluntary Carbon Markets
Article 6 and domestic/regional emission trading schemes have not led to any changes in the International Voluntary Markets. International Voluntary buyers now have a plethora of choices of ITMOs, Art6.4ERs with Use Authorization, Art.6.4ERs without Use Authorization and, of course, the many different types of voluntary credits issued by different voluntary standards (like CDM, VCS, GS, GCC, etc) .
Since International Voluntary Markets have no double counting issues, as on date, no nation has banned the trade of carbon credits under it.
As per Taskforce on Scaling Voluntary Carbon Market [TSVCM] assessment, the International Voluntary Carbon Market is poised to become a 200 Billion USD market by year 2030; with present market size of 1 Billion USD.
Mr. Manish Dabkara, CMD & CEO of EKI Energy Services Ltd. said, "We do not foresee the proposed amendments to have any impact on the export of credits in the voluntary carbon market. It will help the country to develop a robust carbon market and fast-track its journey to become net zero."
Welcoming the amendments to the EC Act, Manish added, "Each Nation has the best choice to meet its NDC is to opt for an ETS. Many developed and developing nations do have or are soon going to have such schemes in near future. The future of India's carbon market looks all geared up under Compliance and Voluntary Carbon Markets and carbon credit experts, team EKI is ready to explore all possible markets globally".
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