Atmanirbhar carbon credits standards: India’s Milestone Move towards a sustainable future

Summary

In a recent video, the host discusses significant amendments made by India's Ministry of Power on December 19, 2023, to the carbon credits trading scheme. The changes introduce India's own carbon credit standards, reducing the need for Indian companies to seek credits abroad. This move is expected to make the process more cost-effective and accessible, potentially increasing India's role as a carbon credit supplier in the international market. The video also hints at a second major change allowing non-obligated entities to generate carbon credits, fostering a growing carbon offset market in India.

Takeaways

• 📢 The Indian government's Ministry of Power introduced amendments to the carbon credits trading scheme on December 19, 2023, following an initial announcement on June 28, 2023.
• 🌟 Two significant changes are brought by the amendments, with one discussed in the video and the other to be covered in a subsequent video.
• 🏛 The value of a carbon credit is determined by the issuer's reputation and the underlying project for which the credit is issued, similar to the value of an MBA degree depending on the issuing institution.
• 💼 The market value of carbon credits varies widely and cannot be generalized due to the dependence on multiple factors such as the issuer, the project type, and the location of sale.
• 🌱 Established carbon credit issuers like Gold Standard, Vera, and American Carbon Registry significantly influence the value of the carbon credit.
• 📄 Carbon credits are market tradable certificates awarded for activities that reduce greenhouse gas emissions or remove them from the atmosphere.
• 🇮🇳 Indian companies previously had to obtain carbon credits from foreign issuers, which was costly and time-consuming.
• 🔄 The Bureau of Energy Efficiency (earlier the administrator for India's carbon credit trading scheme) is tasked with developing India's own carbon credit standards.
• 🌐 This move by India is significant as it marks the creation of homegrown carbon credit standards, potentially making the process more accessible and affordable for Indian companies.
• ❓ The new standards raise questions about how they will compete with global voluntary standards and gain acceptance from international buyers.
• 📈 The amendments of December 19 also allow non-obligated entities to generate carbon credits, expanding the carbon offset market in India.

Q & A

What significant changes did the amendments by the Government of India's Ministry of Power bring to the carbon credits trading scheme?

The amendments brought two significant changes: the introduction of India's own carbon credit standards and allowing non-obligated entities to generate carbon credits.

Why is the establishment of India's own carbon credit standards important?

It is important because it allows Indian companies to obtain carbon credits without the need to go abroad, saving both time and money, and potentially making the credits more accessible and relevant to local projects.

What does the term 'carbon credit' refer to in the context of the script?

A carbon credit is a market tradable certificate given for an activity that reduces greenhouse gas emissions or removes greenhouse gases from the atmosphere.

How does the value of a carbon credit in the market depend on the issuer and the underlying project?

The value of a carbon credit depends on the reputation and standards of the issuer, similar to the prestige of an educational institution, and the nature and impact of the underlying project for which the credit is issued.

What are some of the established carbon credit issuers mentioned in the script?

Some of the established carbon credit issuers mentioned are Gold Standard, Vera, and American Carbon Registry.

Why might an Indian company currently need to go abroad to get carbon credits?

An Indian company might need to go abroad because India did not have its own carbon credit standards and had to rely on international issuers for credits.

What is the role of the Bureau of Energy Efficiency (BEE) in the new carbon credit standards?

The BEE, formerly the administrator for India's carbon credit trading scheme, has been tasked with developing India's own carbon credit standards.

How does the introduction of India's own carbon credit standards affect international companies?

International companies can now also come to India to get carbon credits issued by Indian standards, potentially increasing the market for Indian carbon credits.

What is the significance of allowing non-obligated entities to generate carbon credits?

Allowing non-obligated entities to generate carbon credits helps create a carbon offset market, encouraging more participation in carbon reduction activities beyond those legally mandated.

What are some of the questions raised by the new amendments regarding the Indian government's standards in relation to global voluntary standards?

Questions include whether the Indian government's standards will compete with global voluntary standards like VCS and GS, and how they will gain acceptance from international buyers.

How does the script compare the establishment of India's carbon credit standards to setting up a new MBA program?

The script compares it by stating that the value and acceptance of the new MBA program, or in this case, the carbon credit standards, depend on how the world perceives and values them.