Environment and Ecology Indian Carbon Market ▪ Emissions Intensity Targets: The Union government will announce emissions intensity targets for nine industrial sectors by February-end 2024. Carbon Trading Timeline: ▪ Industries will have one year to implement compliance measures. ▪ Carbon credit trading is expected to begin by October 2026. ▪ Indian Carbon Market: ▪ Aims to reduce, remove, or avoid greenhouse gas (GHG) emissions through a carbon trading framework. ▪ Focuses on emissions intensity (GHG emitted per unit of activity) rather than absolute cuts. ▪ Industries Affected :The nine sectors required to comply are iron & steel, aluminium, chlor-alkali, cement, fertilizers, pulp & paper, petrochemicals, petroleum refineries, and textiles. Carbon Credit Mechanism: ▪ Unlike European emission trading, where companies must cap emissions, India’s approach focuses on making production more efficient. ▪ Example: Steel production—industries can adopt technologies that reduce coal consumption or recover waste heat. Voluntary Carbon Offsets: ▪ Private projects, like afforestation, can generate carbon credits. ▪ These credits can be sold internationally to companies needing offsets for regulatory compliance. India’s Climate Commitment: ▪ India aims to reduce its emissions intensity to 45% of 2005 levels by 2030. India’s First Biannual Transparency Report (BTR) ▪ Being prepared under the 2015 Paris Agreement obligations. ▪ Will undergo technical review by UNFCCC-accredited experts. Context : ▪ BTR is a new reporting requirement for all signatories of the Paris Agreement. ▪ Previously, only developed nations were required to submit such reports. ▪ The COP 2024 in Baku marked the first official submission of BTRs. ▪ India missed the December 2024 deadline but is finalizing the report. Contents of the BTR: ▪ Covers energy efficiency trends and renewable energy adoption ▪ Provides a detailed overview of emissions sources and climate mitigation efforts. Sectoral Contributions to Emissions (2020 Data): ✓ Energy Sector: 75.66% (largest…
