Latest news with #CCTS
New Indian Express
a day ago
- Business
- New Indian Express
Embed Indian carbon market in global trade context
The PAT experience Though there are several areas where PAT, launched in 2012, could be implemented better, it has created industry familiarity with a measurement, reporting and verification (MRV) mechanism and a good number of accredited energy auditors. The carbon credit trading scheme (CCTS) will reduce the PAT reporting frequency from three years to an annual basisthereby increasing the spend on the MRV as well as speed of emissions reduction. Absent renewable energy, a majority of industrial emissions emerge out of energy consumption. PAT compliance has entailed over ten years of industry efforts to reduce energy consumption. The low hanging fruit of energy intensity has already been picked. Industry majors have invested in best available technology. Without further investment in technology, can the obligated entities reduce emissions further or will they simply bear the cost of purchasing carbon credits from other better performers? Indian carbon market embedded in global decarbonisation PAT was an autonomous measure to discipline industrial energy consumption. It did not function under any multilateral pressure or even context. CCTS on the other hand will have to respond to linkages and contestation with several carbon markets. CCTS will be a tool to defend Indian industry against cheap imports as well as to gain access to carbon conscious export markets. Building the trade dimension into the Indian Carbon market is imperative to create policy and business opportunities. The PAT experience Though there are several areas where PAT, launched in 2012, could be implemented better, it has created industry familiarity with a measurement, reporting and verification (MRV) mechanism and a good number of accredited energy auditors. The carbon credit trading scheme (CCTS) will reduce the PAT reporting frequency from three years to an annual basis thereby increasing the spend on the MRV as well as speed of emissions reduction. Absent renewable energy, a majority of industrial emissions emerge out of energy consumption. PAT compliance has entailed over ten years of industry efforts to reduce energy consumption. The low hanging fruit of energy intensity has already been picked. Industry majors have invested in best available technology. Without further investment in technology, can the obligated entities reduce emissions further or will they simply bear the cost of purchasing carbon credits from other better performers? Indian carbon market embedded in global decarbonisation PAT was an autonomous measure to discipline industrial energy consumption. It did not function under any multilateral pressure or even context. CCTS on the other hand will have to respond to linkages and contestation with several carbon markets. CCTS will be a tool to defend Indian industry against cheap imports as well as to gain access to carbon conscious export markets. Building the trade dimension into the Indian Carbon market is imperative to create policy and business opportunities.
Hindustan Times
4 days ago
- Business
- Hindustan Times
India's Path Through COP30 and Carbon Innovation
As the world prepares for COP30 in Belém, Brazil, in 2025, the urgency of climate action has never been greater. The IPCC's Sixth Assessment Synthesis Report (2023) confirmed what climate scientists have long warned - global warming is accelerating, and the world must act swiftly and cohesively to stay within the 1.5°C threshold. Against this backdrop, COP30 represents not only a critical inflection point for global negotiations but also a pivotal opportunity for India to fast-track its climate ambition through robust carbon markets and the adoption of cutting-edge technologies such as digitally verified carbon offsets. This World Environment Day, as we reflect on environmental stewardship, it is essential to examine how India can shape and benefit from these evolving global mechanisms. India has historically walked a tightrope between development imperatives and environmental responsibility. However, the past few years have seen a definitive shift. India remains one of the few major economies whose emissions trajectory is broadly aligned with its fair share under the Paris Agreement, despite its lower historical emissions and ongoing development needs. According to Climate Action Tracker (2024), India's climate policies are more ambitious relative to its capabilities than many high-income nations, and its renewable energy targets are among the most aggressive globally. India's target of achieving net-zero emissions by 2070, supported by intermediary milestones such as 500 GW renewable energy capacity by 2030, reflects both ambition and pragmatism. One of the most significant instruments in this strategy is the development of a national carbon market. In July 2023, India formally launched the Carbon Credit Trading Scheme (CCTS), governed by the Bureau of Energy Efficiency and the Central Electricity Regulatory Commission. This compliance carbon market builds upon the successes of the Perform, Achieve and Trade (PAT) scheme, but unlike PAT, the CCTS opens the door for trading emission reduction certificates beyond the power and industrial sectors. The policy framework under the Energy Conservation (Amendment) Act, 2022, integrates voluntary and compliance markets under a unified structure. Experts estimate that India's carbon market could unlock a $200 billion opportunity by 2030, combining domestic growth with environmental integrity. Sectors like steel, cement, transport, and even agriculture are expected to come under its ambit, allowing Indian industries to earn credits by exceeding efficiency norms and trade them within a national or international carbon market. While carbon pricing is still nascent in India, the International Carbon Action Partnership (ICAP) has acknowledged the country's proactive steps as exemplary among developing nations. This approach, experts argue, not only supports emissions reduction but offers Indian companies a competitive edge in a carbon-constrained global economy, particularly once the EU's Carbon Border Adjustment Mechanism (CBAM) fully comes into force by 2026. The credibility of carbon markets hinges not merely on the volume of credits traded, but on their integrity, traceability, and impact. Traditional Monitoring, Reporting and Verification (MRV) mechanisms are often paper-heavy, delayed, and susceptible to manipulation. In this context, Digitally Verified Carbon Offsets (DVCOs) are emerging as a transformative solution. DVCOs use blockchain, satellite imagery, remote sensing, and machine learning to validate emissions reductions in real time. This dramatically reduces verification costs and enhances transparency, making it easier for buyers to trust the offsets they purchase. The World Bank and other organizations highlight that digital MRV systems can significantly streamline the measurement, reporting, and verification processes, leading to increased efficiency and reduced transaction costs. For instance, the World Bank notes that digital technologies can help reduce the cost and time to emission reduction credit issuance, enabling more efficient verification and the move toward real-time generation of carbon credits. India is already demonstrating leadership in this domain. In January 2025, Google announced a landmark partnership with Indian start-up Varaha, which uses mobile-enabled MRV tools and remote sensing to convert agricultural waste into biochar - a stable form of carbon that also improves soil fertility. This project is anticipated to sequester up to 10,000 tonnes of CO₂ equivalent by 2030 while supporting thousands of smallholder farmers. This model exemplifies the co-benefits of digitally verified offsets: environmental impact, economic upliftment, and technological empowerment. Such solutions are scalable across sectors - be it afforestation, renewable energy, or waste management, and can serve as India's flagship offerings in global voluntary carbon markets. Platforms such as Earthlink by Earthood are, therefore, pioneering efforts being made in India to enable real-time and digital certification of emission reductions, ensuring that Indian offsets meet the high-integrity standards required under Article 6 of the Paris Agreement. Earthood's innovative approaches provide the capability to leapfrog legacy verification bottlenecks. The climate agenda at COP30 will largely hinge on the operationalisation of Article 6 of the Paris Agreement, particularly Article 6.2 and 6.4, which govern the framework for international carbon trading and the Sustainable Development Mechanism respectively. At COP29 in Dubai, countries achieved consensus on establishing a registry and tracking system for international carbon transactions, thus setting the stage for concrete market activities under Article 6 by the time COP30 convenes in Brazil. India, as a major emitter and a developing economy, is expected to play a pivotal role in shaping these dialogues. Aligning India's domestic carbon market with Article 6 mechanisms could unlock access to global finance, particularly through Internationally Transferred Mitigation Outcomes (ITMOs). These allow countries or companies to buy high-quality credits from India to offset their own emissions, thereby channeling funding into Indian climate projects, especially those involving rural communities, biodiversity preservation, or green infrastructure. Moreover, India's presidency of the G20 in 2023 and continued participation in coalitions such as the International Solar Alliance and the Leadership Group for Industry Transition (LeadIT) underscore its diplomatic clout in climate matters. India must also seize the opportunity to press for climate finance reform at COP30. While developed nations agreed to mobilise $100 billion annually by 2020, a promise largely unmet - projections suggest that developing countries will need at least $1.3 trillion annually by 2035 to meet their climate goals. India can lead the call for improved financial flows, concessional loans, and blended finance instruments, ensuring that carbon markets do not replicate historic inequities. The journey from intention to impact must be paved with transparency, innovation, and collaboration. Digitally verified carbon markets offer precisely this promise--of making emissions reductions verifiable, financeable and scalable. For India, they offer not only a pathway to meet its net-zero commitment, but also a chance to become a global provider of credible, high-integrity climate solutions. In the decade that defines the future of the planet, India must not just participate - it must lead! This article is authored by Tuhin A. Sinha, national spokesperson, BJP and Kaviraj Singh, executive director and CEO, Earthood.
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Business Standard
26-05-2025
- Business
- Business Standard
Tough emission targets may raise carbon credit prices, impact net zero goal
"More stringent targets, combined with fair carbon pricing, are urgently needed to safeguard Indian industry's competitiveness while still fulfilling our climate commitments" S Dinakar Amritsar Listen to This Article India ignored the elephant in the room — iron and steel — when it announced new draft regulations last month for setting compulsory emission targets for greenhouse gases (GHGs) under the first phase of the compliance regime of the country's Carbon Credit Trading Scheme (CCTS). New Delhi put 282 units, falling under four sectors — aluminium, cement, chlor-alkali, and pulp and paper — on notice. The units belong to some of India's leading conglomerates like Vedanta, Hindalco, Nalco, UltraTech, ACC, Ambuja, Dalmia, and JSW Cement. For now, it has left out five sectors, including steel and
Indian Express
01-05-2025
- Business
- Indian Express
Daily subject-wise quiz : Economy MCQs on gold reserves, Debt-to-GDP Ratio and more (Week 108)
UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today's subject quiz on Economy to check your progress. With reference to the Debt-to-GDP Ratio, consider the following statements: 1. It is a metric that compares a country's public debt to its gross domestic product (GDP). 2. Sudan has the highest debt-to-GDP ratio in the world. 3. India has set a target to decline in the debt-to-GDP ratio to 50±1 per cent by March 31, 2031. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None — According to recent forecasts from the International Monetary Fund (IMF), worldwide public debt may approach levels seen during the COVID-19 pandemic, which reached 98.9% of GDP in 2020. — It predicts that worldwide public debt would reach nearly 100% (99.6%) of global GDP by the end of this decade (2030), owing to persistent economic and geopolitical uncertainty generated by the latest US tariff pronouncements, which have contributed to the acceleration of debt levels. — The debt-to-GDP ratio compares a country's public debt to its GDP. It accurately assesses a country's ability to repay its debts by comparing what it owes to what it produces. The debt-to-GDP ratio is commonly expressed as a percentage, but it may alternatively be understood as the number of years required to service debt assuming all GDP is allocated to debt payments. Hence, statement 1 is correct. — Sudan, primarily due to prolonged conflict and significant economic challenges, surpassed Japan, having the highest debt-to-GDP ratio in the world, at 252 per cent. Hence, statement 2 is correct. — China is ranked 21st, with a 96% public debt ratio, which is lower than that of other wealthy countries. India's debt-to-GDP ratio of 80 per cent ranks 31st internationally. The central government aims to reduce the ratio to 50±1 per cent by March 31, 2031. Hence, statement 3 is correct. Therefore, option (c) is the correct answer. 1. It aims to boost India's green hydrogen exports and encourage energy-intensive sectors to adopt the emerging fuel. 2. The nodal agency for this scheme is the Ministry of Road, Transport & Highways. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — To increase India's green hydrogen exports and encourage energy-intensive sectors to use the developing fuel, the Centre established a certification mechanism under the National Green Hydrogen Mission and announced guidelines for claiming carbon offsets under the Carbon Credit Trading mechanism (CCTS). Hence, statement 1 is correct. — 'This will help ensure that hydrogen produced in India is really green. Greenwashing is common these days, which is why certification is so vital. 'With the certification in place, our green hydrogen will carry a mark of quality and credibility, making it globally desirable and export-ready,' Joshi said of the initiative. — On April 27, the Bureau of Energy Efficiency (BEE), the nodal body for the Green Hydrogen Certification Scheme, unveiled an offset mechanism for hard-to-abate industries using green hydrogen under CCTS that will allow them to earn and trade credits. Hence, statement 2 is not correct. — While CCTS does not yet encompass industries such as steel, refineries, and shipping that have a use case for transitioning to green hydrogen, the updated recommendations will give business with better clarity on compliance before the scope of CCTS is expanded. 1. It was announced during the Union Budget 2022-23. 2. It is a framework to be developed by the public sector banks for the credit needs of the members of Self Help Groups (SHGs). 3. Marginal Farmers are not eligible for this credit. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 and 3 only (d) 1 and 3 only Explanation — During the Union Budget 2025-26, Finance Minister Nirmala Sitharaman introduced Grameen Credit Score, a framework that public sector banks will develop to meet the credit needs of members of Self Help Groups (SHGs) and individuals in rural areas. Hence, statement 1 is not correct and statement 2 is correct. — The existing credit scoring mechanism utilised by Credit Information Companies (ClCs) is, by definition, general to all individual borrowers, with no special consideration for the rural sector. A Grameen credit score suited to the credit assessment needs of SHG borrowers and the rural population would promote improved credit evaluation, enhancing access to formal finance not only for SHGs but also for the rural population, including farmers and marginalised people. Hence, statement 3 is not correct. — This is critical to their economic growth and development. The government is consulting with stakeholders to determine the procedures and dimensions of the Grameen Credit Score. Consider the following countries: 1. United States 2. Germany 3. Italy 4. India What is the correct chronological order (low to high) for the countries having the most gold reserves in 2024-25? (a) 4—3—2—1 (b) 2—3—4—1 (c) 3—4—2—1 (d) 1—4—3—2 Explanation — Since the beginning of 2025, gold has been on a record-breaking run, with its price reaching a new all-time high. Its prices have risen by 23% this year, 50% in the previous year, and 100% in less than three years, according to the Financial Express. — Gold is highly valued in Indian culture, frequently acquired over centuries. However, in line with global trends, India's central bank, the Reserve Bank of India (RBI), increased its gold holdings amid economic concerns and geopolitical tensions, adding approximately 72.60 tonnes to its reserves. — India, Italy, Germany, and the United States are the countries with the largest gold reserves in 2024-25, in chronological order (low to high). Therefore, option (a) is the correct answer. 1. The Reserve Bank of India (RBI) has launched '. domain for banks to combat the increasing number of digital payment frauds. 2. It is mandatory for all banks in the country to have '. as the domain name. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — To address the growing number of digital payment frauds, the Reserve Bank of India (RBI) has chosen to activate the '. domain for banks. A domain name is used to locate websites. It is a unique and easy-to-remember address for accessing internet websites. Hence, statement 1 is correct. — The '.in' is India's Country Code Top Level Domain (ccTLD), which is a two-letter string (for example, or) that is put to the end of a domain name. A ccTLD serves as more than just a string in a web address. It is seen as a symbol of national identity on the worldwide internet. — With the migration to the new domain, all banks in the country will use '. as their domain name. Banks currently use a more generic domain name, such as '.com' or '. Hence, statement 2 is correct. — The RBI has given banks until October 31, 2025 to move to '. Banks are expected to retain both '. and their old internet domains until they fully move to the new one. So, a consumer can go to their bank's website using the old internet name, which will redirect them to the bank's website using the '. domain.
Indian Express
01-05-2025
- Business
- Indian Express
Green hydrogen gets official stamp as India notifies certification scheme, carbon credit rules
To boost India's green hydrogen exports and encourage energy-intensive sectors to adopt the emerging fuel, the Centre has introduced a certification scheme under the National Green Hydrogen Mission and notified rules for claiming emission offsets under the Carbon Credit Trading Scheme (CCTS). Union Minister of New and Renewable Energy Pralhad Joshi on April 29 launched a scheme to measure, monitor, report, verify on-site, and certify green hydrogen based on a standard introduced by the Ministry in 2023. What is green hydrogen certification? 'This will help to ensure that the hydrogen produced in India truly qualifies as green. A lot of greenwashing tends to happen these days, which is why certification is most important. With the certification in place, our green hydrogen will carry a mark of quality and credibility, making it globally desirable and export-ready,' Joshi said about the scheme. On April 27, the Bureau of Energy Efficiency (BEE), nodal agency for the Green Hydrogen Certification Scheme, also announced an offset mechanism for hard-to-abate sectors using green hydrogen under CCTS, to allow them to earn and trade credits. While CCTS does not yet include sectors like steel, refineries, and shipping, where there is a use case for switching to green hydrogen, the latest guidelines will provide industry greater clarity on compliance before the ambit of CCTS eventually widens. A perfect framework for Green Hydrogen, under the visionary leadership of Hon'ble PM Shri @narendramodi ji, enabling clear measurement, monitoring and certification, paving the way for MSMEs to thrive in sustainable energy. — Pralhad Joshi (@JoshiPralhad) April 29, 2025 In 2023, the Ministry of New and Renewable Energy (MNRE) introduced a green hydrogen standard, capping emissions at 2 kg of CO2 per kg of hydrogen produced. The certification scheme, based on the standard, applies only to green hydrogen production from electrolysis or conversion of biomass. With the scheme in place, the export appeal of Indian green hydrogen is likely to increase. At the launch, Joshi said India has signed an agreement with Japan to supply over 4 lakh tonnes of green hydrogen derivatives like green ammonia. The heads of terms (HoT) for the cross-border supply of green ammonia to Japan were signed in August last year. Still, high production costs remain a hurdle. In March, the Parliament's Standing Committee on Energy noted that 'the current cost of production of green hydrogen is quite high,' and called for green hydrogen hubs to be located in regions rich in renewable energy, water, and proximity to demand centres to be economically viable. For exports, the government has identified Kandla, Paradip, and Tuticorin—all with international ports—as key hubs for green hydrogen production. 'In 2012-13, the cost of solar energy was Rs 12 per unit; today it's around Rs 2,' Joshi said. 'What made this possible? Scale, skill, and speed. Green hydrogen will follow the same path,' he added. Offset rules for carbon credits introduced At the launch of the green hydrogen certification scheme, Saurabh Diddi, director of BEE, emphasised the importance of ensuring transparency, authenticity, and accountability in green hydrogen production. Diddi also said the certification scheme 'will enhance investor confidence and enable producers to access carbon credits'. On April 27, the BEE, under the Ministry of Power, released a methodology for estimating carbon offsets from green hydrogen produced via electrolysis. In effect, it defines how switching from fossil fuels like coal to green hydrogen can reduce emissions and earn tradable credits under CCTS. So far, emissions targets under CCTS apply only to sectors like aluminium, chlor-alkali, pulp and paper, and cement, where the potential of green hydrogen is limited. However, the new methodology offers a compliance roadmap for hard-to-abate sectors like steel and shipping, once CCTS expands to cover them. To be clear, the green hydrogen certification scheme itself is not a mitigation tool and does not generate emission reduction credits. However, it can be used to support claims for credits under CCTS. Heavy water use for green hydrogen prompts desalination push Compared to the rules for green hydrogen certification, the carbon offset mechanism under CCTS sets significantly stricter standards—especially on water use for electrolysis. CCTS guidelines, for instance, cap a project's water consumption at no more than 5 per cent of the locally available drinking water, to ensure it does not displace other uses. Producing 1 kg of green hydrogen via electrolysis requires around 10 litres of treated water, according to official estimates. 'The treated water required for hydrogen production can also be sourced by desalinating seawater or treating wastewater, with only a marginal impact on the cost of hydrogen production,' the MNRE told the Standing Committee on Energy. 'Under the Mission, sustainable use of water will be encouraged. R&D will also be supported for technologies that can utilise seawater or waste water directly, thereby reducing the need for treatment and further decreasing the water requirement,' it said. Backed by an outlay of nearly Rs 20,000 crore, the National Green Hydrogen Mission also supports domestic electrolyser manufacturing, green hydrogen production, and sector-specific pilot projects.
