{"id":220046,"date":"2022-12-27T16:54:41","date_gmt":"2022-12-27T11:24:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=220046"},"modified":"2022-12-27T16:54:41","modified_gmt":"2022-12-27T11:24:41","slug":"answered-what-are-carbon-markets-proposed-under-energy-conservation-amendment-bill-2022-also-highlight-the-challenges-in-effective-functioning-of-carbon-markets","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-are-carbon-markets-proposed-under-energy-conservation-amendment-bill-2022-also-highlight-the-challenges-in-effective-functioning-of-carbon-markets\/","title":{"rendered":"[Answered] What are carbon markets, proposed under Energy Conservation (Amendment) Bill, 2022? Also, highlight the challenges in effective functioning of carbon markets."},"content":{"rendered":"<table>\n<tbody>\n<tr>\n<td width=\"616\"><strong>Introduction:\u00a0<\/strong>Contextual introduction.<\/p>\n<p><strong>Body:\u00a0<\/strong>Explain carbon markets, proposed under Energy Conservation (Amendment) Bill, 2022. Also write some challenges in effective functioning of carbon markets.<\/p>\n<p><strong>Conclusion<\/strong>: Write a way forward.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Recently\u00a0<strong>Ministry of New and Renewable Energy<\/strong>\u00a0introduced the Energy Conservation (Amendment) Bill, 2022 with an objective to\u00a0<strong>support energy transition<\/strong>. The Bill amends the\u00a0<strong>Energy Conservation Act, 2001<\/strong>. \u00a0It provides for the regulation of energy consumption by equipment, appliances, buildings, and industries.<\/p>\n<p><strong>Carbon markets:<\/strong><\/p>\n<ul>\n<li>Carbon markets are a tool for <strong>putting a price on carbon emissions<\/strong>.<\/li>\n<li>It establishes <strong>trading systems<\/strong> where carbon credits or allowances can be bought and sold.<\/li>\n<li>A carbon credit is a kind of tradable permit that, as per UN standards, equals one tonne of carbon dioxide removed, reduced, or sequestered from the atmosphere.<\/li>\n<li>The Bill <strong>empowers the Centre to specify a carbon credits trading scheme<\/strong>.<\/li>\n<li>Under the Bill, the central government or an authorised agency will be able to issue carbon credit certificates. These carbon credit certificates will be tradeable in nature.<\/li>\n<\/ul>\n<p><strong>Challenges in effective functioning of carbon markets:<\/strong><\/p>\n<ul>\n<li><strong>Greenwashing:<\/strong> Some companies simply buy credits without making any effort to reduce emissions themselves. It is\u00a0<strong>cheaper for them to buy carbon credit than to invest in emission reducing technologies.<\/strong><\/li>\n<li>Environmental activists argue that\u00a0<strong>only high-quality carbon offsets are effective in reducing emissions<\/strong>. However, many credits available in markets are of poor quality.<\/li>\n<li>Buying carbon credits can\u00a0<strong>deviate the rich nations from the path of reducing emissions<\/strong>. They can simply continue to emit and buy cheap carbon credits from developing countries.<\/li>\n<li>There has been\u00a0<strong>huge surplus of carbon credits in the voluntary markets<\/strong>. According to an estimate, credits for about a billion tons of CO2 have been put up for sale on the voluntary market. But there have been more sellers than buyers.<\/li>\n<li>It is difficult to establish the amount of carbon reduced by <strong>offset projects<\/strong> (like afforestation or wind energy project). The\u00a0<strong>complexity is in<\/strong><strong>establishing baseline emissions<\/strong>\u00a0(the emissions in the absence of the project).<\/li>\n<li><strong>Double counting<\/strong> of greenhouse gas reductions.<\/li>\n<\/ul>\n<p>The establishment of a domestic carbon market is a progressive step. However, the actual benefit will depend upon the effectiveness of the market. For this, the Government must ensure that proper regulations are established.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:\u00a0Contextual introduction. Body:\u00a0Explain carbon markets, proposed under Energy Conservation (Amendment) Bill, 2022. Also write some challenges in effective functioning of carbon markets. Conclusion: Write a way forward. Recently\u00a0Ministry of New and Renewable Energy\u00a0introduced the Energy Conservation (Amendment) Bill, 2022 with an objective to\u00a0support energy transition. The Bill amends the\u00a0Energy Conservation Act, 2001. \u00a0It provides for&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-what-are-carbon-markets-proposed-under-energy-conservation-amendment-bill-2022-also-highlight-the-challenges-in-effective-functioning-of-carbon-markets\/\">Continue reading <span class=\"screen-reader-text\">[Answered] What are carbon markets, proposed under Energy Conservation (Amendment) Bill, 2022? Also, highlight the challenges in effective functioning of carbon markets.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-220046","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/220046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=220046"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/220046\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=220046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}