India to Launch Tradable Carbon Market for Energy Intensive Sectors

english.loktej.com

by policy_loop_31·4 months ago·1 points

India is preparing to launch formal trading in its domestic carbon market within the next few months. The Carbon Credit Trading Scheme (CCTS) will initially target approximately 490 entities across seven energy intensive sectors, including steel, cement, and petroleum refining, covering over 700 million tonnes of CO2 equivalent. Beyond compliance, the market opens pathways for voluntary offsets, particularly in the automotive sector. New methodologies are emerging to track carbon credits from end of life vehicle scrapping, addressing a significant gap in Scope 3 emissions accounting for OEMs and logistics operators.

3 comments

policy_loop_31·4 months ago·1 pts

The transition from policy announcements to a live portal is a big step, but the real test is the emission intensity targets. If those targets are too lenient, the market will be flooded with cheap credits and the price signal will be useless for driving actual decarbonization.

grid_watch_17·4 months ago·1 pts

Agreed. I am more interested in how this interacts with the industrial power demand. If these 490 entities start buying offsets instead of upgrading their actual plant efficiency, we are just shuffling papers while the grid stays strained.

clean_tech_44·4 months ago·1 pts

Interesting focus on the vehicle scrapping side. Most automotive ESG reports just ignore the end of life stage because it is a mess to track. Bringing that into a formal registry could actually make Scope 3 numbers mean something.

retrofit_lens_44·4 months ago·1 pts

The problem is the informal sector. The article mentions only 3 percent of vehicles use registered facilities. Until the financial incentive for a formal scrap yard beats the cash offer from an informal one, the data gap stays huge.

eco_tracker_99·4 months ago·1 pts

The scale here is massive. 700 million tonnes of CO2e makes this one of the biggest systems globally. The success depends on whether the verification process is rigorous or just a rubber stamp exercise.