In the final week of June 2023, two groundbreaking events unfolded in India, propelling the nation closer to its net-zero commitments. On 26th June, the Ministry of Environment, Forests, and Climate Change introduced the ‘draft Green Credit Programme Implementation Rules, 2023’, while a mere two days later, on 28th June, the Ministry of Power notified the Carbon Credit Trading Scheme, 2023. Join us in this comprehensive video where we explore the significance of these developments.

In the first part of the video, M Ramesh takes a look at carbon credits and carbon markets. Discover how activities that reduce greenhouse gas emissions or remove them entitle individuals or entities to carbon credits, which can be traded in a market-like fashion. Here are the distinctions between the voluntary market, where environmentally conscious companies participate voluntarily, and the compliance market, where obligated entities adhere to emission reduction laws.

Moving on to the second part, the focus is on the Ministry of Power’s notification introducing the Carbon Credit Trading Scheme, 2023. With the aim of establishing an Indian carbon market, this scheme employs a cap-and-trade mechanism. Learn about the crucial features, such as sector and obligated entity identification, emission intensity targets, and the role of the Bureau of Energy Efficiency as the scheme’s administrator. Discover the regulatory aspect managed by the Central Electricity Regulatory Commission (CERC) and the meta register maintained by the Grid Controller of India Ltd.

The Draft Green Credits Programme Implementation Rules, 2023 talks about green credits, Unlike carbon credits, encompass a broader range of activities beyond greenhouse gas emissions reduction or removal. The eight activities outlined in the draft rules include tree plantation, water conservation, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, ecomark labeling, and building sustainable buildings.

While the Carbon Credit Trading Scheme operates under an obligatory framework, the Green Credits Programme is purely voluntary. The Indian Council of Forestry Research and Education acts as the administrator.

With these groundbreaking notifications, India takes a decisive step towards establishing a market mechanism to meet its net-zero commitments. Stay informed about India’s progress in sustainability and its journey towards a greener future.

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