{"id":348327,"date":"2025-10-17T18:01:41","date_gmt":"2025-10-17T12:31:41","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=348327"},"modified":"2025-10-18T17:10:19","modified_gmt":"2025-10-18T11:40:19","slug":"ensure-safeguards-for-indias-carbon-market","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/ensure-safeguards-for-indias-carbon-market\/","title":{"rendered":"Ensure safeguards for India&#8217;s carbon market"},"content":{"rendered":"<p><strong>UPSC Syllabus Topic:<\/strong> <strong>GS Paper 3 &#8211;<\/strong>Environment .<\/p>\n<h2><strong>Introduction<\/strong><\/h2>\n<p>Growth-led development has strained planetary boundaries, but degrowth is neither fair nor feasible for countries still facing poverty and hunger. A better path is to decouple growth from environmental harm by scaling cleaner technologies, renewable energy, and sustainable farming. India\u2019s expansion of solar power and micro-irrigation shows this balance is possible. Carbon credits can support the transition, but they must protect rights, ensure fair benefits, and maintain integrity to avoid harm. <strong>Ensure safeguards for India&#8217;s carbon market.<\/strong><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-348389\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Ensure-safeguards-for-Indias-carbon-market.png?resize=398%2C264&#038;ssl=1\" alt=\"Ensure safeguards for India's carbon market\" width=\"398\" height=\"264\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Ensure-safeguards-for-Indias-carbon-market.png?resize=300%2C199&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Ensure-safeguards-for-Indias-carbon-market.png?resize=1024%2C680&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Ensure-safeguards-for-Indias-carbon-market.png?resize=768%2C510&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Ensure-safeguards-for-Indias-carbon-market.png?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 398px) 100vw, 398px\" \/><\/p>\n<h2><strong>About Carbon credits<\/strong><\/h2>\n<p><strong>Carbon credits<\/strong> represent a <strong>certified reduction or removal of greenhouse gases<\/strong>, expressed in <strong>carbon-dioxide (CO<\/strong>\u2082<strong>) equivalents<\/strong>.<\/p>\n<p>They are <strong>generated<\/strong> through mitigation activities such as <strong>renewable energy<\/strong> or sequestration efforts such as <strong>reforestation, agroforestry, and biochar<\/strong>.<\/p>\n<p><strong>Firms buy<\/strong> these credits to <strong>offset emissions<\/strong> while they transition to cleaner processes, <strong>ideally rewarding developing countries<\/strong> for adopting low-carbon practices.<\/p>\n<p>The market is <strong>booming<\/strong>, with <strong>175\u2013180 million credits retired annually<\/strong>, mainly from <strong>renewables<\/strong> and <strong>nature-based projects<\/strong> like <strong>REDD+<\/strong> and <strong>afforestation<\/strong>.<\/p>\n<h2><strong>There are four general stages of a carbon credit\u2019s lifecycle.<\/strong><\/h2>\n<p><strong>Origin and evolution<\/strong><\/p>\n<ol>\n<li><strong>First idea:<\/strong> The idea of using <strong>tradable permits<\/strong> for pollution control is traced to economists <strong>Crocker (1966)<\/strong> and <strong>John H. Dales (1968)<\/strong>, often cited as the early architects of marketable pollution rights.<\/li>\n<li><strong>Kyoto Protocol (adopted 1997; in force 2005):<\/strong> Building on that idea, Kyoto created the world\u2019s first global carbon-market architecture\u2014<strong>Clean Development Mechanism (CDM), Joint Implementation (JI), and Emissions Trading<\/strong>\u2014with <strong>Certified Emission Reductions (CERs)<\/strong> equal to <strong>1 tonne of CO<\/strong>\u2082<strong>e<\/strong>.<\/li>\n<\/ol>\n<ul>\n<li><strong>Clean Development Mechanism (CDM):<\/strong> Allowed industrialized countries to invest in emission reduction projects in developing nations to earn tradable Certified Emission Reductions (CERs).<\/li>\n<li><strong>Joint Implementation:<\/strong> Enabled Annex I (developed) countries to trade Emission Reduction Units (ERUs) among themselves.<\/li>\n<li><strong>International Emissions Trading:<\/strong> Allowed countries with surplus allowances to sell them to countries with deficits.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong> Paris Agreement (adopted 2015; in force 2016):<\/strong> Reinforced carbon trading under Article 6, replacing and updating Kyoto&#8217;s mechanisms. It allows countries to voluntarily cooperate to achieve their climate targets, known as Nationally Determined Contributions (NDCs), by trading Internationally Transferred Mitigation Outcomes (ITMOs).<\/li>\n<\/ol>\n<ul>\n<li><strong>Article 6.2:<\/strong> Countries may <strong>transfer<\/strong> mitigation outcomes internationally (ITMOs) with accounting to avoid <strong>double counting<\/strong>.<\/li>\n<li><strong>Article 6.4:<\/strong> A <strong>UN-supervised mechanism<\/strong> will issue credits via an Article 6.4 registry.<\/li>\n<li><strong>Article 6.8:<\/strong> A framework for <strong>non-market<\/strong> approaches.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><strong>COP26 (Glasgow, 2021):<\/strong> Parties <strong>finalised the Article 6 rulebook<\/strong>, enabling implementation (6.2 guidance, 6.4 modalities\/procedures, 6.8 work programme).<br \/>\n5. <strong>COP28 (Dubai, 2023):<\/strong> Parties did <strong>not<\/strong> adopt additional decisions on 6.2\/6.4, so some operational details remain open.<\/li>\n<\/ol>\n<h2><strong>Initiative taken for the carbon credit<\/strong><\/h2>\n<ol>\n<li><strong> United nation initiative<\/strong><\/li>\n<\/ol>\n<ul>\n<li><strong>Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA programme):<\/strong> A global market-based initiative to curb emissions from international aviation by requiring airlines to offset growth in emissions above 2020 levels.<\/li>\n<li><strong>UNEP endorses and supports the two voluntary carbon market <\/strong>integrity initiatives (VCMI and ICVCM) that are in the process of developing best practice requirements for independent standards and market stakeholders.<\/li>\n<li><strong>VCMI is a global nonprofit providing guidance<\/strong> on how to make a meaningful impact on climate action through voluntary use of carbon credits.<\/li>\n<li><strong>The Integrity Council for the Voluntary Carbon Market (ICVCM) <\/strong>is multi-stakeholder led independent governance body. It establishes and maintains the highest standards of ethics, sustainability, and transparency for the global voluntary carbon market.<\/li>\n<li><strong>Voluntary Carbon Markets (VCMs):<\/strong> Outside of mandatory regulations, organizations participate in VCMs to purchase credits from projects that reduce or remove GHG emissions. Key standards and registries include:<\/li>\n<li><strong>Verra&#8217;s Verified Carbon Standard (VCS):<\/strong> One of the most widely used standards for generating voluntary credits.<\/li>\n<li><strong>The Gold Standard:<\/strong> Developed by the World Wide Fund for Nature (WWF), in 2003, this program supports projects that reduce GHG emissions and contribute to sustainable development.<\/li>\n<li><strong>Integrity Council for the Voluntary Carbon Market (ICVCM):<\/strong> An initiative defining the Core Carbon Principles to ensure high integrity in the market.<\/li>\n<\/ul>\n<ol>\n<li><strong>Several countries<\/strong> and regions have implemented carbon market mechanisms tailored to their national contexts.<\/li>\n<\/ol>\n<ul>\n<li><strong>The European Union Emissions Trading System (EU ETS)<\/strong> remains the world\u2019s most established and comprehensive carbon market. Operating since 2005.<\/li>\n<li><strong>China\u2019s national ETS<\/strong>, launched in 2021 and significantly expanded in 2024, is now the largest in the world by emissions volume.<\/li>\n<li><strong>Brazil<\/strong> finalized the legal framework for its national ETS in 2024, following years of stakeholder engagement and technical groundwork.<\/li>\n<li><strong>New Zealand launched its ETS <\/strong>in 2008, covering nearly all sectors, including forestry.<\/li>\n<li>In 2015, the <strong>Republic of Korea launched the first nationwide ETS in East Asia<\/strong>.<\/li>\n<\/ul>\n<ol>\n<li><strong> National initiatives (India)<\/strong><\/li>\n<\/ol>\n<ul>\n<li><strong>Carbon Credit Trading Scheme (CCTS), 2023:<\/strong> A market-based mechanism enacted under the Energy Conservation (Amendment) Act, 2022. It establishes a framework for a domestic carbon market in India.<\/li>\n<li><strong>Green Credit Programme (GCP):<\/strong> An initiative that incentivizes environmentally friendly actions beyond GHG emission reductions.<\/li>\n<li><strong>National Agroforestry Policy, 2014:<\/strong> Aims to expand tree cover on farmlands for carbon sequestration, with initiatives like the GROW Portal mapping potential areas.<\/li>\n<li><strong>Blue Carbon Initiatives:<\/strong> Projects to restore coastal and marine ecosystems like mangroves for carbon sequestration, aligning with India&#8217;s NDC commitments. (Mangrove Initiative for Shoreline Habitats &amp; Tangible Incomes &#8211; (<strong>MISHTI) scheme<\/strong>)<\/li>\n<\/ul>\n<h2><strong>Concerns related to carbon credits<\/strong><\/h2>\n<ol>\n<li>U<strong>nfair benefit-sharing:<\/strong> When companies set the rules and keep terms unclear, communities are sidelined and get a small share of the benefits.<\/li>\n<li>L<strong>and rights disruption:<\/strong> When <strong>free, prior, and informed consent (FPIC)<\/strong> is bypassed, community tenure and access suffer. The Kenyan court\u2019s finding that key conservancies lacked public participation\u2014and <strong>Verra\u2019s suspensions<\/strong>\u2014illustrate how skipping consent can unravel entire projects.<\/li>\n<li><strong>Credibility and measurement:<\/strong> Weak measurement and monitoring\u2014such as flawed soil-carbon accounting\u2014undermine the integrity of credits and erode trust.<\/li>\n<li>Ex<strong>clusion:<\/strong> Smallholders and marginalised caste groups in India are often excluded because engagement and follow-up are weak; <strong>CIMMYT\u2019s findings<\/strong> of low farmer participation reflect this gap.<\/li>\n<li><strong>Policy blind spots:<\/strong> India\u2019s Carbon Credit Trading Scheme (CCTS) emphasises procedures and compliance but gives insufficient attention to land rights, FPIC, and equitable revenue sharing.<\/li>\n<li><strong>Agriculture lag:<\/strong> Despite high potential, agriculture projects struggle to mature. Of 64 Indian agri projects under Verra, only four are registered and none has issued credits, revealing systemic barriers to farmer-led carbon outcomes..<\/li>\n<\/ol>\n<h2><strong>Way forward<\/strong><\/h2>\n<ol>\n<li><strong>Secure rights with community control.<\/strong> Make FPIC mandatory, recognise community and customary tenure, and co-design projects with elected local bodies so rules fit local needs.<\/li>\n<li><strong>Make benefits transparent.<\/strong> Publish simple benefit-sharing contracts and payment schedules, and track all revenues openly so communities can see what is owed and what is received.<\/li>\n<li>I<strong>ndependent oversight.<\/strong> Keep procedures light but predictable, and set up a national environmental regulator\u2014on the lines of SEBI\/RBI\u2014to set standards and supervise carbon markets.<\/li>\n<li><strong>Guarantee credit quality.<\/strong> Use robust MRV (Monitoring, Reporting, and Verification), conservative baselines, and independent audits, and adopt tech-enabled public dashboards to prevent \u201cinspect-and-extort\u201d practices.<\/li>\n<li><strong>Include and equip farmers.<\/strong> Fund outreach, hands-on training, and after-care for smallholders and marginalised groups, and operationalise accessible agri methods (biomass, Compressed Biogas, low-emission rice).<\/li>\n<li>B<strong>uild public trust.<\/strong> Hold regular stakeholder consultations, update rules based on feedback and evidence, and promote environmental literacy so citizens understand roles and responsibilities.<\/li>\n<\/ol>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>Carbon credits can align growth with sustainability only when justice anchors the market. India should pair expansion with FPIC, secure land rights, transparent benefit-sharing, inclusion of smallholders, and lean oversight with robust MRV. If communities lead and integrity is enforced, climate action can progress without repeating extractive, top-down models.<\/p>\n<p><strong>Question for practice:<\/strong><\/p>\n<p>Discuss how carbon credits can help decouple economic growth from environmental harm in India, and explain the key safeguards needed to protect community rights and ensure high-integrity credits.<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/ensure-safeguards-for-indias-carbon-market\/article70171739.ece\"><strong>The Hindu <\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPSC Syllabus Topic: GS Paper 3 &#8211;Environment . Introduction Growth-led development has strained planetary boundaries, but degrowth is neither fair nor feasible for countries still facing poverty and hunger. A better path is to decouple growth from environmental harm by scaling cleaner technologies, renewable energy, and sustainable farming. India\u2019s expansion of solar power and micro-irrigation&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/ensure-safeguards-for-indias-carbon-market\/\">Continue reading <span class=\"screen-reader-text\">Ensure safeguards for India&#8217;s carbon market<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":348389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[59,216,10498],"class_list":["post-348327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","tag-environment","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Ensure-safeguards-for-Indias-carbon-market.png?fit=1280%2C850&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/348327","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=348327"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/348327\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/348389"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=348327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=348327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=348327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}