The government is expected to establish regulations for the domestic carbon market in the upcoming months, following an analysis of models from Europe and other environmentally proactive countries, according to Dirk Forrister, President and CEO of the International Emission Trading Association (IETA). Forrister mentioned, “We are awaiting specific details regarding the targets and the level of flexibility that will be provided”.
Forrister emphasized that the strength of the market will be determined by the forthcoming regulations. He said, “The stringency of these regulations is still unknown, but they are expected to be released in the coming months, not years”.
India faces a significant challenge in balancing its substantial power demands with its goals of enhancing renewable energy and energy efficiency initiatives. The country aims to improve its existing infrastructure while also drawing more investments into these sectors.
The government is looking to expand the ‘Perform, Achieve and Trade’ program into a comprehensive carbon market, covering various industries such as power, chemicals, fertilizers, and steel.
As reported by business-standard.com, Forrister noted that Indian officials have been studying carbon market models from Europe, Chile, Colombia, California, and South Africa. They have also been participating in study programs organized by the World Bank and the Asian Development Bank.
