India lists 13 activities for trading of carbon credits on global platform
- Recently India has finalized various activities for trading of carbon credits under Article-6.2 mechanism of Paris Agreement.
- The Union government has finalized a list of different activities (see info-graphic) to facilitate transfer of emerging technologies and mobilize international finance in India.
- Earlier, the National Designated Authority for Implementation of Paris Agreement (NDAIPA) was notified.
- The NDAIAPA is tasked with deciding the project types that can participate in the international carbon market under the Article 6 mechanism.
- Article 6 of the Paris Agreement allows countries to voluntarily cooperate with each other to achieve emission reduction targets set under their Nationally Determined Contributions (NDCs).
- Under this, individual countries are able to help other countries meet climate goals.
- They help such countries meet their climate goals by transferring carbon credits earned from reductions in greenhouse gas (GHG) emissions.
- Article 6.2 lays the groundwork for trading in reductions in GHG emissions.
- Carbon trading is a market-based system for buying and selling permits and credits. It allows the permit holder to emit carbon dioxide.
- The overall limits on the permissible amount of emissions from various sources including electrical industry, automotive etc. are set.
- After this the governments issue permits. If a company substantially curbs its own carbon emissions, it can trade additional permits for cash.
- Carbon trading was formally launched in 1997 under the Kyoto Protocol.
GHG Mitigation Activities:
- Renewable energy with storage, solar thermal energy, offshore wind, green_hydrogen, compressed biogas, tidal energy, ocean thermal energy etc.
- Alternative Ingredients: Green Ammonia (The process to make ammonia is 100% renewable and carbon free).
- Remediation work: Carbon Capture Utilization and Storage (CCUS).
Source – Business Standard
