The Bureau of Energy Efficiency (BEE) under the Ministry of Power is set to announce emissions intensity targets for nine industrial sectors by February-end, to launch India’s carbon trading scheme.
These industries will have one year to implement measures to cut emissions, with carbon credit trading expected to start by October 2026.
The carbon market aims to reduce, remove, or avoid greenhouse gas emissions through trading carbon credit certificates.
India's carbon market will focus on improving efficiency in industries, like producing steel with less coal or recovering heat, rather than directly cutting emissions.
The nine sectors required to meet emissions intensity targets are iron and steel, aluminium, chlor-alkali, cement, fertilizers, pulp and paper, petrochemicals, petroleum refineries, and textiles.
Voluntary carbon offset markets may start this year, where companies can generate credits from activities like afforestation.
India aims to reduce emissions intensity by 45% from 2005 levels by 2030 as part of its climate commitments.
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