{"id":260209,"date":"2023-09-15T19:59:06","date_gmt":"2023-09-15T14:29:06","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=260209"},"modified":"2023-09-15T19:59:06","modified_gmt":"2023-09-15T14:29:06","slug":"expanding-the-indian-economy-the-green-way","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/expanding-the-indian-economy-the-green-way\/","title":{"rendered":"Expanding the Indian economy, the green way"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cExpanding the Indian economy, the green way\u201d <\/strong>published in \u201cThe Indian Express\u201d <\/strong>on 15th September 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Environment<\/p>\n

Relevance- <\/strong>Issue related to climate change<\/p>\n

News<\/strong>– The Centre is planning to set up the Indian Carbon Market (ICM) by establishing a national framework that will help in decarbonising the domestic economy by pricing GHG emissions via trading in carbon credit certificates.<\/p>\n

What is the carbon credit?<\/strong><\/h2>\n

A robust carbon trading network<\/strong> is one of the solutions to address the climate emergency. <\/strong><\/p>\n

Carbon credits are temporary “permits”<\/strong> that allow an organization to emit a specific quantity of CO2<\/strong> in a given year.<\/p>\n

This system enables companies with low or no emissions to sell these credits on the market through a carbon trading framework or carbon exchange<\/strong>. By doing so, they can compensate for the emissions<\/strong> of another entity that is willing to purchase these credits.<\/p>\n

What is the importance of carbon credit?<\/strong><\/h2>\n

Certain industrial companies and sectors such as cement, chemicals, iron and steel production, and non-ferrous metals are facing challenges to decarbonize.<\/strong> They have limited options. <\/strong><\/p>\n

Decarbonization<\/strong> in these industries is more costly compared to sectors like transportation and power generation.<\/p>\n

Carbon credits offer a valuable means<\/strong> for companies to achieve their sustainability objectives. <\/strong>These organizations can either acquire carbon credits<\/strong> or support initiatives <\/strong>that generate carbon credits. <\/strong><\/p>\n

What are some facts about the Indian Carbon Market (ICM) being planned by the Indian government?<\/strong><\/h2>\n

The draft framework for the Indian Carbon Credit Scheme 2023 <\/strong>has been recently released by the central government.<\/p>\n

The Bureau of Energy Efficiency<\/strong> has been assigned the responsibility of developing the Carbon Trading Scheme <\/strong>in collaboration with the Ministry of Environment, Forest & Climate Change.<\/p>\n

The Centre’s draft notification does not include provisions for the procedures, regulations, or guidelines <\/strong>governing the operation of carbon markets. This responsibility will be entrusted to a National Steering Committee chaired by the Secretary of the Ministry of Power.<\/strong><\/p>\n

ICM will be subject to regulation. It will also offer flexibility<\/strong> to companies operating in challenging-to-decarbonize sectors.<\/strong><\/p>\n

What are the benefits associated with the Indian Carbon Market?<\/strong><\/h2>\n

First,<\/strong> ICM will attract investments for transitioning <\/strong>to a low-carbon ecosystem. <\/strong>It will also enable India to achieve its target of reducing the emissions intensity of its GDP <\/strong>by 45% by 2030, compared to the 2005 levels.<\/p>\n

Second,<\/strong> the introduction of carbon credit trading will provide a significant boost to the energy transition efforts <\/strong>due to its broader coverage <\/strong>of potential energy sectors across the country. The Indian Carbon Market (ICM) will play a significant role in decarbonizing the commercial and industrial sectors. <\/strong><\/p>\n

Third, <\/strong>The decision by the Centre will also lead to increased awareness, transformation, and innovation<\/strong> within industries that are difficult to decarbonize. Companies motivated by incentives and penalties<\/strong> will start incorporating environmental impact <\/strong>as a critical factor in their strategic planning. <\/strong><\/p>\n

As carbon-related tariffs like the Carbon Border Adjustment Mechanism (CBAM)<\/strong> begin to exert a direct influence on trade, businesses will need to consider both domestic and international repercussions. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cExpanding the Indian economy, the green way\u201d published in \u201cThe Indian Express\u201d on 15th September 2023. Syllabus: GS3- Environment Relevance- Issue related to climate change News– The Centre is planning to set up the Indian Carbon Market (ICM) by establishing a national framework that will help in… Continue reading Expanding the Indian economy, the green way<\/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":[59,216,10500],"class_list":["post-260209","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-environment","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":13,"cached_at":1698363934,"cached_date":1698434212},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/260209","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=260209"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/260209\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=260209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=260209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=260209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}