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Source- This post on the Road Map for ‘Hard to Abate’ Industries has been created based on the article “Emission standards may be imposed on polluting industries” published in “The Hindu” on 24 July 2024.
Why in the news?
Finance Minister Nirmala Sitharaman’s Budget speech indicated that “hard to abate” industries such as iron, steel, and aluminium will soon have to meet emission targets.
About Road Map for ‘Hard to Abate’ Industries
1. A road map will be developed to transition “hard to abate” industries from “energy efficiency” targets to “emission targets.”
2. Appropriate regulations will be established to shift these industries from the “Perform, Achieve, and Trade” mode to the “Indian Carbon Market” mode.
3. Emission norms, traditionally applied to large industries, will now be tightened for small and micro-scale industries.
4. An investment-grade energy audit will be conducted for traditional micro and small industries in 60 clusters, including brass and ceramic industries.
5. Financial support will be provided to help these industries transition to cleaner forms of energy and implement energy efficiency measures. The scheme will be replicated in another 100 clusters in the next phase.
About India Carbon Market
1. These directives come amid the development of the India Carbon Market, which has been in the works for several years.
2. A carbon market or emission trading scheme allows carbon credits, created by preventing carbon emissions, to be bought and sold at negotiated prices.
3. The system requires industries to curb annual emissions to function effectively.
Current Incentives
i) Currently, industries in India have no emission curbs in exchange for carbon credits.
ii) Industries are incentivized to achieve energy efficiency targets through the Perform, Achieve, Trade scheme, which has been operational since 2015.
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