New Delhi
India is presently taking steps towards environmental sustainability by introducing carbon emission reduction targets for four pivotal industries, government sources told Reuters on Tuesday.
Reuters cited two anonymous government sources, who revealed that petrochemicals, iron and steel, cement, and pulp and paper industries will have carbon emission intensity benchmarks and reduction goals spanning three years. These targets align with India's commitment to the United Nations for greenhouse gas reduction, forming a crucial component of its climate change strategy.
Government insiders have disclosed to Reuters that these four sectors will help India enter the carbon trading market in April 2025. This initiative empowers companies to buy and sell carbon credits, helping them meet their emission reduction targets.
Reuters quoted the senior government official as saying, "The mandates will be applicable from 2024-25, and the (carbon) trade will start in 2025-26."
India's climate commitments are robust, aiming to reduce greenhouse emissions relative to gross domestic product (GDP) by 45 per cent compared to 2005 levels by 2030. Furthermore, the nation has set an ambitious goal of achieving net-zero emissions by 2070. These emission reduction mandates represent a significant step toward realising these climate ambitions.
Companies exceeding their emission reduction targets will earn carbon credits, which can be traded to companies falling short of their emission reduction objectives. This market-driven approach encourages environmental responsibility and sustainability.
The framework for trading carbon credits is being established following a legislation passed by the Indian Parliament in December of the previous year. Rules and targets for these industries are expected to be announced before December.
Presently, India has already implemented a market for trading certificates, rewarding entities in 13 sectors for surpassing energy savings targets. This prior experience provides a solid foundation for the upcoming carbon trading initiative.
(With inputs from Reuters)
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