Introduction:
The world is facing a crisis of unprecedented magnitude with climate change posing a threat to our planet. In order to address this challenge, the international community has been working towards developing policies and initiatives to reduce greenhouse gas (GHG) emissions. One of the ways in which this is being achieved is through the global carbon market, which allows countries and entities to trade carbon credits to reduce emissions. In this article, we will examine India's role in the global carbon market and explore its current position.
India's participation in the global carbon market:
India has been an active participant in the global carbon market, with its participation mainly through the Clean Development Mechanism (CDM) under the Kyoto Protocol. The CDM allows companies in developed countries to earn carbon credits by investing in emissions reduction projects in developing countries such as India. According to the United Nations Framework Convention on Climate Change (UNFCCC), India was the second largest beneficiary of CDM projects with over 2,000 projects registered under the CDM, representing about 35% of the total CDM projects globally.
India's contribution to the carbon market:
India's participation in the CDM has had a significant impact on the carbon market. According to the World Bank, India has generated more than 800 million Certified Emission Reductions (CERs), which represent around 20% of the total CERs generated under the CDM. The CERs generated by India have been used by entities in developed countries to offset their own emissions and meet their obligations under the Kyoto Protocol.
India's current position in the global carbon market:
While India's contribution to the global carbon market has been significant, its position has changed in recent years. India, along with other developing countries, is not required to set binding emissions reduction targets under the Paris Agreement. However, India has pledged to reduce the emissions intensity of its economy by 33-35% by 2030 compared to 2005 levels.
India is also taking steps to increase its participation in the global carbon market. In 2021, India launched its own domestic carbon market, called the National Carbon Market. The market is designed to provide a regulatory framework for trading in carbon credits, with the aim of reducing emissions and promoting sustainable development. The National Carbon Market is expected to cover a wide range of sectors, including power, transport, and manufacturing.
India's role in the global carbon market is also expected to expand with the country's increasing focus on renewable energy. India has set an ambitious target of achieving 450 GW of renewable energy capacity by 2030, which is expected to lead to a significant reduction in GHG emissions. India has also joined the International Solar Alliance, a group of countries focused on expanding the use of solar energy.
Conclusion:
India's role in the global carbon market has been significant through its participation in the CDM. However, its position is evolving with the launch of its own domestic carbon market and its increasing focus on renewable energy. India's commitment to reducing emissions and promoting sustainable development will be crucial in the global effort to address climate change.
