India to set up a carbon trading, green bond regulator
Subscribe to enjoy similar stories. The Union government plans to set up an agency on the lines of National Agriculture Cooperative Marketing Federation of India (NAFED) to regulate carbon trading, two people said. The new body will also be responsible for green initiatives such as green bonds.
It comes in the backdrop of 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change (UNFCCC) taking the landmark decision to draw up rules for a global carbon market, that will allow nations to trade carbon credits. Parliament passed the Energy Conservation (Amendment) Bill, 2022 on 12 December 2022, setting the stage for a carbon market in the country. “The policy on carbon marketing, carbon taxing will emerge, and the ministry of power is working on it.
If the policy comes into effect, there will be agencies which will completely control the carbonatizing market. Green also comes under the same category," one person cited above said. “The definition of green is down to what is internationally acclaimed green.
Europe is so stringent about green that even if you produce hydrogen from natural gas, they say it is not green. For them, green is something that does not use anything from carbon and that could only be biomass, which is the most renewable," the person added. “Such stringent measures are coming, and India must oppose it.
So, there has to be a body which will take care of that. As of today, it’s DPIIT (department for promotion of industry and internal trade). There is none under the energy sector as yet.
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