How Indian Carbon Market might look like vis-à-vis global markets?

24 July, 2023

Key takeaways:

  1. India is planning on launching a carbon market of its own. It is likely to build off existing market-based mechanisms – PAT and RECs. This could cover nearly 65% of the country’s emissions
  2. Three kinds of carbon credits are envisaged as per the discussion paper floated by India’s Bureau of Energy Efficiency
    • Converted Carbon Credit Certificates
    • Mandatory Carbon Credit Certificates
    • Offset Carbon Credit Certificates
  3. The initial carbon price signal is likely to be in the range of Rs 600- 1000 per ton of CO2e, which is similar to carbon prices of programs such as RGGI and the ETS in China.