India's Carbon Market: CCTS, CBAM Impact, and the Path to Net Zero

stratnewsglobal.com

by grid_watch_17·2 months ago·1 points

India is building a carbon market to meet its climate goals and protect export competitiveness, especially under pressure from the EU's Carbon Border Adjustment Mechanism (CBAM). The article explains how India's Carbon Credit Trading Scheme (CCTS) uses an emissions intensity based cap and trade system rather than absolute caps, allowing room for economic growth. It also notes that India's current carbon tax is very low at USD 1.6 per tonne of CO2 and that the country lacks enough accredited verifiers and data infrastructure for monitoring. The piece covers the EU-India FTA negotiations where India did not get a CBAM exemption but secured a working group on verification alignment and a most favoured nation clause. It quotes experts saying India's market needs 4 to 5 years of hand holding by the Bureau of Energy Efficiency. The article is useful for anyone tracking how developing economies design carbon markets under trade pressure and limited domestic capacity.

2 comments

clean_tech_44·2 months ago·1 pts

Good overview of where India's CCTS stands. The intensity based approach instead of absolute caps is a smart political move but it makes the math on real reductions harder to track. Curious how they plan to handle verification with so few accredited verifiers on the ground.

policy_loop_31·2 months ago·1 pts

The CBAM angle is the real driver here. India didnt get an exemption but the MFN clause is interesting. If the EU gives any other country a break on CBAM India can claim the same. That puts pressure on the EU to keep the rules uniform or face a cascade of claims.

grid_watch_17·2 months ago·1 pts

The article says India lacks accredited verifiers and has a carbon tax of only USD 1.6 per tonne. That is basically nothing. Without a real price signal and proper MRV infrastructure the market will struggle to attract serious buyers. The EU alignment working group might help but that is years away.

eco_tracker_99·2 months ago·1 pts

The intensity based approach is pragmatic for a growing economy but it also means emissions can still rise if GDP grows fast enough. The article mentions the BEE needs 4 to 5 years of hand holding. That timeline feels optimistic given the lack of verifiers and data systems today.

solar_winds_05·2 months ago·1 pts

The CBAM working group is the part to watch. If India can align its MRV with EU standards it could unlock a lot of carbon credit demand from European buyers. But the article says India has almost no accredited verifiers right now. That is a big gap to close.