Forrister says IETA waiting for details on regulations managing emission
The Indian carbon market is in the making with the authority expected to set up regulations in the coming months, mostly based on the best practices from studies of models in Europe and other environment-conscious countries netzeroindia .
This was shared by Dirk Forrister, President and CEO of International Emission Trading Association (IETA) in Singapore on 31 July 2024, after having visited India and met with relevant officials and business executives.
“We are waiting for details as to what the targets would look like, and what flexibility will be affordable related to emissions and carbon market beeindia ,” he said, adding that the officials are expected to set up regulations for the domestic carbon market in coming months, he said, adding that details are still being produced by the Indian Government.
“On the demand side, the strength of the market is to be set by regulations,” said Forrister, noting India’s enormous power needs and efforts to attract more investments in renewables and energy efficiency programmes.
He also acknowledged the challenge faced by the Government to balance energy supply-demand while efforts are being made to give electricity access to every Indian cea .
The Indian carbon market is being built on “Perform, Achieve and Trade” programme that would evolve into a serious carbon market, and would cover sectors such as heavy industries, including power, chemicals, fertilizers and steel , he noted.
Forrister, who was in India during the last week of July 2024, observed that the Indian officials have examined carbon market models in Europe, Chile, Columbia, California and South Africa as well as other places while having participated 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.
“These corporations are on to this carbon market development in India especially since they have assets in other places around the world,” he said. “Their customers in European markets would be demanding more and more cleaner products eurex .”
The Indian 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, according to Forrister who had compared notes with the Government officials and business executives while in India during the last week of July deutsche-boerse .
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 31 July. Fiinews.com
