India to join U.S.-led carbon market project

Source-This post on India to join U.S.-led carbon market project is based on the article “India to join U.S.-led carbon market project” published in “The Hindu” on 20th March 2024.

Why in the News?

India has joined one of the four cooperative work programmes under the ‘clean energy pillar’ of the U.S.-led Indo-Pacific Economic Framework (IPEF). India will join the cooperative working group on carbon markets through the Ministry of Power and the Bureau of Energy Efficiency.

India is also considering two of the other co-operative work-programme initiatives on clean electricity and the use of sustainable aviation fuel.

About Indo-Pacific Economic Framework (IPEF) Work Programme

1. India is developing its own carbon markets and is keen on joining the IPEF work programme on carbon markets.

2. The Bureau of Energy Efficiency is the nodal authority working on it.

3. The idea behind joining is to:

a) Evaluate how carbon markets are developing in each of the economies (of partner countries)

b) Whether there is a rationale for trying to standardise and integrate these carbon markets at some point in time.

c) India is working on deepening the country’s carbon markets. Amendments were done to the carbon credits trading scheme (CCTS). Joining the programme will help towards establishment of independent standards for carbon trading and would allow non-obligated entities to generate carbon credits.

About Indo-Pacific Economic Framework (IPEF)

1. It is an economic initiative launched by USA in 2022.

2. The framework was established with 14 regional partners: Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US, and Vietnam.

3.  IPEF aims at having a common set of rules and standards around four pillars- connectivity and digital trade; resilient supply chains; clean energy; and corruption-free fair trade.

Read more: IPEF: Indo-Pacific Economic Framework

UPSC Syllabus: Environment