Thursday, August 15, 2024.
After Malaysia, China and Indonesia, as we speak we publish about one other related carbon credit score market in Asia.
As you already know, India is at present probably the most populous nation on this planet, with 1.4 billion folks.
The agricultural sector accounts for 18.6% of India’s GDP and 54.6% of the nation’s workforce. This data is contained in a press launch do Ministry of Agriculture & Farmers Welfare from India, because of the launch of the Framework for Voluntary Carbon Market for the Agricultural Sector, which shall be detailed under.
However initially we quote the Bureau of Power Effectivity (BEE) do Ministry of Energy from India.
“Globally, carbon pricing instruments are essential tools in the fight against climate change. These instruments can be categorized into two main types: compliance mechanisms and voluntary mechanisms. Compliance mechanisms, such as Emissions Trading Systems (ETS), are typically implemented and managed by governments. They set a maximum limit (cap) for emissions and allow entities to trade (trade) emission allowances to meet their targets. Voluntary mechanisms, on the other hand, are often managed by independent regulators or non-governmental organizations and allow entities to voluntarily offset their emissions by purchasing carbon credits from projects that reduce or remove GHG emissions. In some countries such as China, South Korea, Australia and Japan, there are also voluntary mechanisms operated by the government.”
Initially referred to as Carbon Credit score Buying and selling Scheme (CCTS), the construction of the “Principal Scheme” for the Indian Carbon Market (ICM) was completed in June 2023.
In parallel with the CCTS, rules were also proposed for a Green Credit Program separate, whereby green credits could come from activities such as sustainable agriculture, forestry, waste management, building construction and water management practices.
“O Green Credit Program is an innovative mechanism based on market practices to encourage voluntary environmental actions in different sectors, by different stakeholders… To obtain Green Creditsindividuals and entities must register their activities through the dedicated central government application/website. The Administrator will verify the activity through a designated agency, with self-verification for small projects. Once verification is complete, the Administrator will grant a certificate of Green Credit which will be negotiable… “. Click here to read more.
Right after COP-28 in Dubai, the Ministry of Power India has requested some changes to BEE, the carbon credit administrator. In addition to the tasks of “validation” and “verification” of carbon credit, as a substitute of simply “verification”, BEE has been requested to develop its personal methodologies.
This means that Indian entities will no longer have to rely on foreign standards agencies to validate their carbon credits. This will reduce the costs and time associated with overseas certification, making it more convenient for Indian carbon credit generators and domestic traders. More details here.
A few weeks later, it was the Ministry of Agriculture & Farmers Welfare who launched the Framework for Voluntary Carbon Market in Agriculture Sector. Click here for the full article after which to obtain the 68-page doc.
According to the document, modern times require moving beyond the idea of merely increasing “yield per hectare” and instead adopting sustainable practices that not only increase farmers’ incomes but also promote social equity and environmental stewardship.
Click on the image below for a summary of carbon market-related programs in India, with a governance perspective.
India’s agriculture is highly vulnerable to climate change, with around 50% of cultivated areas requiring rain-fed irrigation.
On this sense, it isn’t even obligatory to focus on the rising protagonism of India in as we speak’s world.
