BENGALURU: To control the green house gas emissions and reduce the impacts of global warming, the Ministry of Environment, Forests and Climate Change (MoEFCC) recently released a notification on the carbon credit trading scheme, 2023, which defines the Indian carbon market framework. However, experts and environmental officials pointed out that the method of regulation, calculation, and interventions for improvement is not clearly defined.
An official from the state environment department explained to TNIE: “The notification now standardises carbon trading and releases the basic definitions for banking and trading procedure. But how will the environment department regulate, control and monitor is not mentioned.”
Vijay Mohan Raj, Principal Secretary, Ecology and Environment department said, earlier the entire carbon trading sector was not regulated and was like an open market for individuals and companies. Now it is being certified, but who will verify it is yet to be ascertained.
The MoEFCC issued the notification on April 16, 2025, while the rules were framed in 2023. The Act will come into effect from 2026.
“The concept is innovative. It is not just looking at reducing carbon emissions and footprint, but also creating a channel for trading. Through this the scope for industries, agricultural and horticultural sectors and framers to innovate and come up with new solutions to reduce methane and carbon emissions is being opened up,” said BP Ravi, Principal Chief Conservator of Forests, Evaluation, Working Plan, Research and Training Wings, Karnataka Forest Department.
An official from the environment department explained, many farmers are now trying new techniques for crop cultivation with reduced water supply. For example, paddy is a water intensive crop. But in some regions, like Davengere, farmers are using wet and dry methods for crop cultivation. This has helped them in reducing methane generation and nutrient content in crops has increased. With this notification, the farmers’ yield will be recognised and carbon credit scores will be given for further trading.
The official added that there are also companies whose carbon footprint is high. They reason that it cannot be reduced as it will effect their production. With this notification, these companies will have an opportunity to trade carbon with farmers so that their net emissions is neutralised. However the trade mechanism is yet to be finalised, the official added.
