A market for #carboncredits is being created in India by green energy providers like Adani Greens, a subsidiary of billionaire Gautam Adani’s Adani Group, and carbon offsetters like EKI Energy Services to advance the country’s energy transformation objectives. India, one of the top emitters of greenhouse gases worldwide, wants to achieve net-zero emissions by 2070.
The need for a strong carbon trading market is emphasized by Prime Minister Narendra Modi’s desire for India to develop into an industrial powerhouse while also reducing emissions by 60 million tonnes annually by 2030. The country’s transition to carbon neutrality can be significantly accelerated by creating a domestic market developed in concert and closely with relevant sector stakeholders.
Through creating a market where businesses can exchange emissions permits, carbon credits were developed to lower greenhouse gas emissions. Under the system, companies are given a predetermined quantity of carbon credits, which decreases over time. Any surplus can be sold to another business.
A bill to create carbon trading, the Energy Conservation (Amendment) Bill 2022, was approved by the lower house of parliament in August. Government and business organizations can obtain carbon credits under a carbon trading plan by lowering their greenhouse gas emissions.
Markets allow for the purchase and sale of identical credits. While damaging the prospects of coal-based power production capacity and Coal India’s growth aspirations, carbon markets will also open up new vistas for businesses involved in developing, advising, and trading carbon credits.
However, carbon credits can be quite advantageous for developing nations like India because they ensure that economic activities are carried out while considering carbon-related targets. This will guarantee that this might be a region of substantial prospects in the following couple of decades, supported by supportive legislation and a business climate. Due to this, the global market for carbon credits surged by about 164% in the previous year, and by 2030, the sector’s full size will be anticipated to surpass $100 billion.