Latest news with #CarbonCreditTradingScheme
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
India needs to build a credible carbon market, minus an offset mechanism
Not including all hard-to-abate sectors in carbon emission intensity targets will reduce market size and impact liquidity. Offset mechanism isn't a solution Listen to This Article The Carbon Credit Trading Scheme (CCTS) was notified by the Government of India in June 2023, and several steps have since been taken to operationalise it. Trading is expected to begin in 2026, with market stabilisation expected by 2027. This article analyses the government's approach to developing a carbon market and highlights key challenges in making it a successful initiative. Admittedly, this is a complex and evolving subject, and several additional issues will need to be addressed going forward. Let's begin with the basics. A genuine and fairly estimated demand is essential for the development of a market for any
&w=3840&q=100)
Business Standard
26-05-2025
- Business
- Business Standard
Tough emission targets may raise carbon credit prices, impact net zero goal
"More stringent targets, combined with fair carbon pricing, are urgently needed to safeguard Indian industry's competitiveness while still fulfilling our climate commitments" S Dinakar Amritsar Listen to This Article India ignored the elephant in the room — iron and steel — when it announced new draft regulations last month for setting compulsory emission targets for greenhouse gases (GHGs) under the first phase of the compliance regime of the country's Carbon Credit Trading Scheme (CCTS). New Delhi put 282 units, falling under four sectors — aluminium, cement, chlor-alkali, and pulp and paper — on notice. The units belong to some of India's leading conglomerates like Vedanta, Hindalco, Nalco, UltraTech, ACC, Ambuja, Dalmia, and JSW Cement. For now, it has left out five sectors, including steel and
Time of India
19-05-2025
- Business
- Time of India
UN climate body adopts new guidelines to strengthen emission-reduction assessment of projects, the mechanism to help countries cut emissions
NEW DELHI: The UN climate change body, responsible for setting up a global carbon market under the Paris Agreement, has adopted new standards to guide how emission-reducing projects measure their impact. Tired of too many ads? go ad free now It will allow countries, including India, to raise climate ambition and implement national action plans more affordably. Known as the Paris Agreement Crediting Mechanism (PACM), it will enable countries and other non-state stakeholders to work together on reducing greenhouse gas (GHG) emissions by generating high-integrity carbon credits that support global efforts to fight climate change. The move comes at a time when India has also taken an important step to ensure that all its traditionally high-emission industries — such as aluminium, cement, and pulp and paper — to reduce their GHG emissions to meet specific targets under the compliance mechanism of the Carbon Credit Trading Scheme, 2023. The new standards, adopted by the UN body in its May 12-16 meeting held in Bonn, Germany, will also help India finalise its draft policy on the issue, which was notified last month to bring hard-to-abate industries on board to reduce their GHG emission intensity, beginning 2025-26. Two key specific standards, adopted during the meeting, include a standard for estimating the emissions that would have happened without a project under the mechanism (known as the 'baseline') and another accounting for any unintended increases in emissions that might happen elsewhere as a result of a project (known as 'leakage'). 'They are key to ensuring that carbon credits issued under the PACM are ambitious, real, additional, and verifiable... The outcome of this meeting paves the way for methodologies under the PACM to accelerate implementation,' said the UN climate change body in a statement on the decisions adopted in Bonn. 'This was a very significant meeting. We finally adopted a groundbreaking decision ensuring crediting levels are set consistently with a pathway to net neutrality, through a process of minimum downward adjustment of crediting levels over time,' said Martin Hession, chair of the supervisory body. Tired of too many ads? go ad free now The rules, adopted by the UN supervisory body, identify and encourage opportunities for verifiable emission reductions, attract funding to implement them, and allow cooperation among countries and other groups to conduct and benefit from these activities.
Indian Express
01-05-2025
- Business
- Indian Express
Green hydrogen gets official stamp as India notifies certification scheme, carbon credit rules
To boost India's green hydrogen exports and encourage energy-intensive sectors to adopt the emerging fuel, the Centre has introduced a certification scheme under the National Green Hydrogen Mission and notified rules for claiming emission offsets under the Carbon Credit Trading Scheme (CCTS). Union Minister of New and Renewable Energy Pralhad Joshi on April 29 launched a scheme to measure, monitor, report, verify on-site, and certify green hydrogen based on a standard introduced by the Ministry in 2023. What is green hydrogen certification? 'This will help to ensure that the hydrogen produced in India truly qualifies as green. A lot of greenwashing tends to happen these days, which is why certification is most important. With the certification in place, our green hydrogen will carry a mark of quality and credibility, making it globally desirable and export-ready,' Joshi said about the scheme. On April 27, the Bureau of Energy Efficiency (BEE), nodal agency for the Green Hydrogen Certification Scheme, also announced an offset mechanism for hard-to-abate sectors using green hydrogen under CCTS, to allow them to earn and trade credits. While CCTS does not yet include sectors like steel, refineries, and shipping, where there is a use case for switching to green hydrogen, the latest guidelines will provide industry greater clarity on compliance before the ambit of CCTS eventually widens. A perfect framework for Green Hydrogen, under the visionary leadership of Hon'ble PM Shri @narendramodi ji, enabling clear measurement, monitoring and certification, paving the way for MSMEs to thrive in sustainable energy. — Pralhad Joshi (@JoshiPralhad) April 29, 2025 In 2023, the Ministry of New and Renewable Energy (MNRE) introduced a green hydrogen standard, capping emissions at 2 kg of CO2 per kg of hydrogen produced. The certification scheme, based on the standard, applies only to green hydrogen production from electrolysis or conversion of biomass. With the scheme in place, the export appeal of Indian green hydrogen is likely to increase. At the launch, Joshi said India has signed an agreement with Japan to supply over 4 lakh tonnes of green hydrogen derivatives like green ammonia. The heads of terms (HoT) for the cross-border supply of green ammonia to Japan were signed in August last year. Still, high production costs remain a hurdle. In March, the Parliament's Standing Committee on Energy noted that 'the current cost of production of green hydrogen is quite high,' and called for green hydrogen hubs to be located in regions rich in renewable energy, water, and proximity to demand centres to be economically viable. For exports, the government has identified Kandla, Paradip, and Tuticorin—all with international ports—as key hubs for green hydrogen production. 'In 2012-13, the cost of solar energy was Rs 12 per unit; today it's around Rs 2,' Joshi said. 'What made this possible? Scale, skill, and speed. Green hydrogen will follow the same path,' he added. Offset rules for carbon credits introduced At the launch of the green hydrogen certification scheme, Saurabh Diddi, director of BEE, emphasised the importance of ensuring transparency, authenticity, and accountability in green hydrogen production. Diddi also said the certification scheme 'will enhance investor confidence and enable producers to access carbon credits'. On April 27, the BEE, under the Ministry of Power, released a methodology for estimating carbon offsets from green hydrogen produced via electrolysis. In effect, it defines how switching from fossil fuels like coal to green hydrogen can reduce emissions and earn tradable credits under CCTS. So far, emissions targets under CCTS apply only to sectors like aluminium, chlor-alkali, pulp and paper, and cement, where the potential of green hydrogen is limited. However, the new methodology offers a compliance roadmap for hard-to-abate sectors like steel and shipping, once CCTS expands to cover them. To be clear, the green hydrogen certification scheme itself is not a mitigation tool and does not generate emission reduction credits. However, it can be used to support claims for credits under CCTS. Heavy water use for green hydrogen prompts desalination push Compared to the rules for green hydrogen certification, the carbon offset mechanism under CCTS sets significantly stricter standards—especially on water use for electrolysis. CCTS guidelines, for instance, cap a project's water consumption at no more than 5 per cent of the locally available drinking water, to ensure it does not displace other uses. Producing 1 kg of green hydrogen via electrolysis requires around 10 litres of treated water, according to official estimates. 'The treated water required for hydrogen production can also be sourced by desalinating seawater or treating wastewater, with only a marginal impact on the cost of hydrogen production,' the MNRE told the Standing Committee on Energy. 'Under the Mission, sustainable use of water will be encouraged. R&D will also be supported for technologies that can utilise seawater or waste water directly, thereby reducing the need for treatment and further decreasing the water requirement,' it said. Backed by an outlay of nearly Rs 20,000 crore, the National Green Hydrogen Mission also supports domestic electrolyser manufacturing, green hydrogen production, and sector-specific pilot projects.
Time of India
28-04-2025
- Business
- Time of India
Carbon-heavy sectors handed green targets, liable to fines
(AI image NEW DELHI: All traditionally high-emission industries in India - such as aluminum, cement and pulp & paper - will be required to reduce greenhouse gas (GHG) emissions to meet specific targets. For the first time, the environment ministry has set GHG emission intensity (GEI) reduction targets for two years, beginning 2025-26, covering 282 obligated entities across the country. These industrial units will be liable to pay a penalty for non-compliance. The ministry has come out with a draft notification on this under the compliance mechanism of the Carbon Credit Trading Scheme, 2023. It will be finalised after analysing objections or suggestions of stakeholders who are expected to send their comments to the ministry within 60 days. Industries which will have to reduce GEI within a specified time-period include 13 aluminium plants of Vedanta, Hindalco, Bharat Aluminium, Nalco and others; 186 cement plants of JK Cement, Dalmia Cement, Shree Cement, UltraTech, ACC, Ambuja, JSW Cement and others; 53 pulp & paper plants; and 30 plants that use Chlor-Alkali process to extract certain chemicals. If these industries do not meet their GEI targets, they will have to purchase carbon credit certificates from the Indian carbon market.
