Industry Calls For Faster Progress On Carbon Markets At Delhi Meet

All In Favour of Carbon markets

The Carbon Markets Association of India (CMAI) successfully hosted day-long Carbon Policy Development 2024 conclave on converging green solutions with carbon markets to achieve India’s net-zero targets on May 16 in New Delhi.

The event brought together prominent figures from bureaucracy, industry, think tanks and academia to discuss critical strategies for achieving India’s ambitious goal of becoming a net-zero nation by 2070. Abhay Bakre, Director General,  Bureau of Energy Efficiency, Dr. Ajay Mathur, Director General of the International Solar Alliance, R.K. Jain, Principal Executive Director of Indian Railways,  Subhash Kumar, Director General, Association of CGD Entities, Deepesh Nanda, Managing Director & CEO, Tata Power Renewable Energy Limited, Kapil Kumar Jain, Executive Director, Gas Authority Of India Ltd., Damon DuBord, First Secretary – Energy Affairs, Embassy of the USA, Ashish Tiwari, Secretary, Department of Environment, Forest & Climate Change, Government of Uttar Pradesh, Manish Dabkara, President, CMAI, Ashok Kumar, Regional Representative (Central & South Asia), Dr. Lokesh Dube, Senior Standards Manager (Energy and LUF), Gold Standard, Rohit Kumar, Secretary General, Carbon Markets Association of India, were among the many experts who were present at the event.

These leaders highlighted the urgency of climate action, the importance  of sustainable finance in mobilizing the necessary investments for India’s energy transition, and appreciated CMAI’s efforts and its approach of posing a united front with industry participation.

Explaining the time taken for key circulars and rules ,Abhay Bakre, Director General, Bureau of Energy Efficiency highlighted the deep deliberations and engagement before every change “We want to keep it simple … can’t make it so limited that tomorrow you have difficulty in implementing it. At the same time, we can’t make it so flexible that it creates confusion,” he added.

The official said that India would have rolled out its policy to support a carbon market in the country much earlier, but will only do so when the government is satisfied that each and every stakeholder will benefit from the country’s carbon market.

Ajay Mathur, Director General, International Solar Alliance, spoke of the course of action in policymaking for the industry, and highlighted the role of CMAI in it, remarking at the event, “I argue that it should be good if the carbon credits that we create domestically or globally are tooled to ask the developed countries that they should create a global guarantee fund.”

Deepesh Nanda of TPREL highlighted how present value of carbon credits effectively ensured they made nil impact on renewable energy firms plans, and the need to change that status quo. He also stressed on derisking issues like land acquisition for RE projects while stressing that the impact of carbon markets remains zero on EPC, distribution, manufacturing (of solar panels and cells), even as C&I and group captive segments offered some possibilities due to concepts like Virtual PPA. He singled out Rooftop Solar where the cost of electricity, seen as the primary motivator for many consumers, was limiting faster adoption due to subsidies for power. An addition of attractive gross metering rates would help make rooftop solar more attractive in many cases, he added. Pointing to the low utilisation rates of public chargers at less than 2%, he made the case for making these cheaper by integrating possible carbon credits for operators here.

Manish Dabkara, President, Carbon Market Association of India , said, “It’s evident that India is taking significant strides in shaping its compliance carbon market – a critical move towards a sustainable future.  It is important that India stays on course and up-to-date with the global trends, achieves its own climate goals while benefiting from the international market financially. This is where the role of CMAI becomes crucial, when it comes to influencing the policies necessary to steer India towards a net zero future with the help of carbon markets.”

Sectoral focus for policy development

Various stakeholders, decision makers, and policymakers influencing the carbon market policy in India and other trade-related matters had enlightening conversations at the conference. A dedicated session focused on international cooperation in achieving climate goals. Panelists explored the role of mechanisms like Article 6 of the Paris Agreement and Carbon Border Adjustment Mechanisms (CBAM) in facilitating global emissions reductions. Discussions also addressed the challenges and opportunities these frameworks present for sustainable development and fostering innovation.

Another panel discussion focused on specific green solutions for decarbonization. Panelists discussed the importance of maximizing domestic renewable energy sources, with a specific focus on modern bioenergy as a promising option due to India’s surplus of biomass and waste materials. The discussion highlighted the multiple benefits of modern bioenergy, including clean fuel generation, job creation, rural development, and environmental pollution mitigation. Strategies and pathways for effectively harnessing energy from biomass and waste materials were explored in this session.

The third session of the day followed recent advancements in carbon capture and alternative fuels, showcasing innovative approaches and breakthroughs. The session also addressed the challenges hindering large-scale implementation, including technological limitations, cost considerations, and navigating regulatory hurdles. Panelists emphasized policy frameworks in incentivizing clean technologies.

The conference marked the landmark launch of the CMAI’s Centre of Excellence also CMAI signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology – Bombay (IITB).

Collaboration is Key

The conference concluded on emphasizing the importance of collaboration between public and private sectors in achieving net-zero targets. Participants discussed successful partnerships that have driven innovation and deployment in the clean energy sector.

“It is a very good time when the Government of India has announced offset mechanism which encourages industries in India to take voluntary action to mitigate residual emissions. This will support the green growth of India and its economy, and will also create numerous opportunities not only in India but also other countries, especially with Global South,” said Rohit Kumar, Secretary General, Carbon Markets Association of India in his opening remarks.

IAmRenew was a media partner for the Event.