The Indian government has approved key sectors under its Carbon Credit Trading Scheme, with a strong focus on renewable energy. The initiative aims to accelerate green hydrogen, offshore wind, and energy storage, aligning with India’s low-carbon transition goals.
October 23, 2024. By EI News Network
The Bureau of Energy Efficiency (BEE), under the Government of India’s Ministry of Power, has released an Office Memorandum outlining the approved sectors under the Offset Mechanism of the Carbon Credit Trading Scheme (CCTS).
The scheme was officially introduced through notification in June 2023, with further amendments in December 2023. The CCTS framework has been developed to support India’s transition toward a low-carbon economy, with oversight from the National Steering Committee for Indian Carbon Market (NSC-ICM).
One of the key mandates of the BEE as the Indian Carbon Market Administrator is to identify sectoral scopes and develop methodologies for the offset mechanism. Several sectors were approved for participation in Phase 1 of the offset mechanism.
A major focus of the approved sectors under the CCTS is on renewable energy, aligning with India’s broader climate and sustainability goals. The renewable energy sector covers technologies like green hydrogen production through electrolysis, renewable energy (RE) with storage solutions, and offshore wind projects. Green hydrogen, a key player in decarbonising industries like steel and cement, will receive a significant push under this initiative.
Also, energy storage technologies paired with renewable sources like solar and wind are crucial in overcoming intermittency issues, enabling round-the-clock clean energy supply. Offshore wind, with its vast potential, particularly along India’s long coastline, is also set to play a critical role in this transition.
Alongside renewables, other energy-related technologies include the production of compressed biogas and energy efficiency improvements, especially in sectors such as lime production through the installation of advanced kilns. This ensures that not only are new, cleaner technologies being promoted, but existing industries are being encouraged to adopt more energy-efficient methods.
In addition to energy, some focus is placed on sectors like agriculture and forestry, where sustainable practices like systematic rice intensification and agroforestry can help capture carbon and support India’s goals of reducing greenhouse gas emissions.
While renewable energy remains at the forefront of the CCTS, other sectors such as industrial processes, waste management, and transportation also feature in the broader scope. Technologies like biochar production from waste, landfill gas capture, and the promotion of electric vehicles are included, reflecting a comprehensive approach to carbon reduction across multiple facets of the economy.
To summarise, Carbon Credit Trading Scheme focuses heavily on renewable energy technologies. However, it also includes other vital sectors, ensuring a holistic strategy in achieving carbon neutrality by reducing emissions across the board.
