India's Carbon Market: Regulations Expected in Months

Singapore, Aug 1 (PTI) Government officials are expected to set up regulations for the domestic carbon market in the coming months, having examined models in Europe and green-conscious countries, Dirk Forrister, President and CEO of International Emission Trading Association (IETA), said here on Wednesday.

"We are waiting for details as to what the targets would look like, and what flexibility will be affordable," he told PTI in comments on the progress of India's carbon market development.

Asked to estimate the Indian carbon market size, he said, "We can't estimate just yet because the details are still being produced by the Indian government.

"On the demand side, the strength of the market is to be set by regulations. We don't know how tough they are but they will be coming out in the coming months and not years away."

India has enormous power needs and interests in bringing existing infrastructure but it is also working to attract more investments in renewables and energy efficiency programmes, he noted, acknowledging the challenge for the government to balance as it faces enormous needs to supply power to every Indian.

It is building on the "Perform, Achieve and Trade" programme that would evolve into a serious carbon market, and would cover several sectors such as heavy industries, including power, chemicals, fertilisers and steel among others, he noted.

Forrister, who was in India earlier this week, said the Indian officials have been examining models in Europe, Chile, Columbia, California and South Africa as well as other places while participating in study programmes of the World Bank and the Asian Development Bank.

He also noted that large Indian corporations with global assets are committed to work on reducing emissions.

"Large Indian corporations are on to this carbon market development in India especially since they have assets in other places around the world," he said, adding that their customers in European markets would be demanding more and more cleaner products.

He noted that the government has identified a set of target areas where they would like to see foreign investments and would consider approving carbon credits for exports into the international markets.

"India has got a huge challenge to work out in the carbon markets, and that is why they like to attract investments because the technologies are more expensive that they may not be required domestically as yet," said Forrister, who had compared notes with government officials and business executives while in India earlier this week.

India has enormous potential to reduce carbon emission both in nature and industrial production, improving electricity production, he underlined at the launch of Singapore Carbon Market Alliance (SCMA) at the Bloomberg Sustainable Business Summit 2024 held in the city state on Wednesday.