The COP-29 and India's carbon credit mechanism
The COP-29 summit in Baku will center on climate finance, with a primary focus on carbon credits and inter-country disputes. In 2023, India revised its Nationally Determined Contributions (NDCs) to incorporate a domestic carbon market, as mandated by the Energy Conservation Act of 2022. India's objective is to harmonize its climate targets with its economic agenda, emphasizing the necessity of a market that upholds credibility, efficiency, and equity. Drawing lessons from global practices is imperative for India's success.
The credibility of carbon credits stands as a cornerstone in any market, as a lack of accountability could result in greenwashing. India must conduct meticulous verification of carbon credits, leveraging a national registry and independent third-party validators. Adhering to international best practices is vital for establishing a market of high integrity.
India's carbon market must align with global benchmarks, particularly under Article 6 of the Paris Agreement, to avert double counting of credits. Transparency plays a pivotal role in ensuring credibility, enabling India to contribute to global emission reductions while safeguarding its national interests.
Environmental integrity is paramount under Article 6.2, necessitating robust maintenance of environmental standards. Upholding governance and accountability norms is crucial, with transparency being a key element for compliance. Oversight and audits are indispensable for ensuring the sustainability of projects.
Transparency and integrity are essential components of India's carbon credit system. The disclosure of project specifics is critical, while regular audits and real-time monitoring enhance accountability. The VCMI framework, designed to enhance market transparency, must be integrated into India's carbon credit mechanism to optimize effectiveness. The amalgamation of transparency and integrity can catalyze India's aspirations for climate finance.
source the hindu
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