In a major move towards advancing India’s climate goals, the Bureau of Energy Efficiency (BEE) has unveiled the sectors approved under the central government’s Carbon Capture and Trading System (CCTS), SolarQuarter reported this week.
This initiative, designed to lower carbon emissions and drive sustainable development, includes several sectors crucial for achieving climate impact.
The CCTS will roll out in phases, with the first phase targeting a total of six sectors: energy, industries (including chemical manufacturing), waste management, agriculture, forestry, and transport.
Technologies emphasized for emissions reduction include green hydrogen production, green ammonia usage, biochar utilization, landfill gas capture, and afforestation and reforestation.
In the second phase, four other key sectors will be incorporated: construction, fugitive emissions from fuel sources and from industrial gases, solvent use, and carbon capture, utilization, and storage (CCUS).
The announcement from BEE and the full list of approved sectors and technologies can be found here.
Relevant: India Working On New Policy Framework For CCUS Implementation
“This is a positive step for India’s carbon market. By including sectors with major carbon footprints, the offset market is poised to capture a significant share of domestic carbon credit supply,” Manish Dabkara, head of EKI Energy Services, said in a comment, as quoted by SolarQuarter.
At the same time, Dabkara also called for additional policies to boost demand, such as allowing more CCTS-registered credits for regulatory compliance.
He suggested expanding the list of technologies to encourage innovation and ensure market effectiveness.
With the offset framework now established, India’s carbon market is expected to grow, advancing the nation’s efforts to reduce emissions and secure its position as a prominent player in the global carbon credit market.
