This week marks a pivotal shift in India’s commitment to environmental conservation as the Central Government announces changes to their Carbon Credit Trading Scheme (CCTS) 2023. Initially, there had been indications from the Ministry of Power that a domestic carbon offset market would not be instituted in the near future. However, as cited in Carbon Herald, this stance visibly shifted on the 19th of December 2023, opening new avenues for eco-conscious endeavors within India.
The CCTS, now referred to as the Principal Scheme, has undergone key modifications to further motivate environment-centric initiatives. Significant adjustments include the incorporation of both carbon reduction and carbon dioxide removal (CDR) ventures.
There are crucial implications for businesses under this updated scheme. Specific organisations and enterprises are now assigned emission reduction targets within the compliance mechanism. Alternatively, non-mandatory entities have the option to apply for Carbon Credit Certificates in the offset mechanism by registering their individual removal, reduction, or avoidance schemes.
By 2026, the compliance market intends to encompass the ‘hard-to-abate’ sectors, examples being oil and gas, steel, and aluminum, among others. The initiative has already earned support from industry experts, with Mr. Manish Dabkara, chairman and MD of EKI Energy Services, expressing positive anticipation of the opportunities this change can bring to Indian project developers concerning decarbonization within the national carbon market.