{"id":246122,"date":"2023-06-02T21:04:05","date_gmt":"2023-06-02T15:34:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=246122"},"modified":"2023-06-02T21:04:05","modified_gmt":"2023-06-02T15:34:05","slug":"india-stands-to-gain-from-the-trading-of-carbon-credits","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-stands-to-gain-from-the-trading-of-carbon-credits\/","title":{"rendered":"India stands to gain from the trading of carbon credits"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cIndia stands to gain from the trading of carbon credits<\/strong>\u201d published in Mint <\/strong>on\u00a02nd<\/sup> June 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Environment<\/strong><\/p>\n

Relevance: <\/strong>benefit and challenges associated with carbon credit market<\/strong><\/p>\n

News<\/strong>: The article explains measures taken by India to combat climate change and benefit and challenges associated with carbon credit market.<\/strong><\/p>\n

What are the measures taken by India to tackle climate change?<\/strong><\/h2>\n

Click Here to Read<\/strong><\/a><\/p>\n

India, despite having 17% of the global population, has the lowest per capita emissions among major economies<\/strong>, accounting only 5% of the global total emissions.<\/p>\n

However, projections indicate that India\u2019s emissions would increase.\u00a0Therefore, India has called on the developed nationals to fulfill their promise of climate financing.<\/p>\n

Further, the government is also taking measures to establish a carbon credit market<\/strong><\/a> to achieve the Nationally Determined Contributions (NDC) goals.<\/p>\n

Read More: <\/strong>Carbon Markets: Benefits and Challenges – Explained<\/strong><\/a><\/p>\n

How can the carbon credit market benefit India?<\/strong><\/h2>\n

Extra carbon credits may be sold globally, allowing other countries to receive significant amounts of carbon credits from India.<\/p>\n

This can generate revenue to finance climate change mitigation projects and help in transitioning to a low-carbon economy.<\/strong><\/p>\n

What are the challenges with the carbon credit market?<\/strong><\/h2>\n

Competition:<\/strong> In 2021, the global carbon credits market experienced a significant growth of 164%. It is projected to surpass $100 billion by 2030.\u00a0This growth has implications for India’s domestic carbon market, as increased competition for carbon credits may result in higher prices within the country<\/strong>.<\/p>\n

However, due to the international cooperation promoted by the Paris Agreement, this is unlikely to happen.<\/p>\n

Instead, the establishment of a global carbon market could potentially create a more balanced playing field, which could be advantageous for developing countries like India.<\/strong><\/p>\n

Edge for Developed Nation:<\/strong> Developed nations hold an advantage due to their technical and financial capabilities, allowing them to generate and sell carbon credits at a lower cost.<\/p>\n

Hence, a standardized system within a global carbon market is needed to address this imbalance.<\/p>\n

Lack of Centralized Regulatory Body:<\/strong> Currently, trading carbon credits between countries involves complex bilateral agreements, additional reporting requirements, and country authorizations.<\/strong><\/p>\n

Therefore, a centralized registry and regulatory body is needed that would facilitate smoother international trading for India, reducing administrative burdens.<\/p>\n

What more steps can be taken by India to achieve transition to a low-carbon economy?<\/strong><\/h2>\n

a))<\/strong> achieve the target of building 175GW of installed renewable energy capacity by 2022 and 450GW by 2030, b)<\/strong> India would need to increase its total installed solar power capacity to over 5,600GW to attain net-zero by 2070, c)<\/strong> the use of coal, particularly in power generation, would have to decrease by 99% by 2060, d)<\/strong> consumption of crude oil across different sectors would need to reach its peak by 2050 and then significantly decrease by 90% between 2050 and 2070, e)<\/strong> the industrial sector could potentially meet 19% of its total energy requirements through the use of green hydrogen.<\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

India can position itself as a key player in the global carbon market and achieve its climate goals while promoting sustainable development by following the 5 Es formula.<\/p>\n

5 Es formula\u2014<\/strong>Enhancing carbon reduction efforts, Establishing robust monitoring and reporting systems, Encouraging international cooperation, Exploring technology and Innovation, and Empowering local stakeholders.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cIndia stands to gain from the trading of carbon credits\u201d published in Mint on\u00a02nd June 2023. Syllabus: GS 3 \u2013 Environment Relevance: benefit and challenges associated with carbon credit market News: The article explains measures taken by India to combat climate change and benefit and challenges associated with… Continue reading India stands to gain from the trading of carbon credits<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,11125],"class_list":["post-246122","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/246122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"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=246122"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/246122\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=246122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=246122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=246122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}