India Prepares to Set Emissions Targets Ahead of COP29 in Baku

ENA Sectors 2024-10-24 15:19:35 New Delhi, Oct 24 (KNN) With just a few weeks left before the 29th Conference of the Parties (COP29) convenes in Baku, Azerbaijan, India is finalising carbon dioxide emissions intensity targets for key industries, according to a senior Environment Ministry official. These targets are a crucial step towards establishing Indias compliance-based carbon market, expected to launch in the 2025-26 fiscal year. The emissions intensity targets will specify limits on carbon dioxide emissions per unit of production for sectors such as aluminium, cement, fertilisers, iron and steel, petrochemicals, and textiles. These industries are often referred to as hard-to-abate sectors due to the high cost of implementing technologies that curb emissions. Companies that exceed their emissions targets will be required to purchase carbon credits from others with surplus allowances. Each credit represents one tonne of carbon dioxide saved beyond the required limit, with prices fluctuating based on market demand and regulatory conditions. We are close to finalising the targets, said the official. There are ongoing consultations with industries, but we aim to ensure that the framework is comprehensive. This development is part of India's broader efforts under the Perform, Achieve and Trade (PAT) Scheme, which mandates energy efficiency improvements for industrial sectors. The upcoming carbon market will be monitored by the National Steering Committee for Indian Carbon Market (NSC-ICM), co-chaired by top officials from the Ministry of Environment, Forest and Climate Change and the Ministry of Power. One of the key objectives at COP29 will be to secure consensus on a new financial goal for developed countries to transfer funds to developing nations, helping them transition to cleaner energy. However, expectations are also high that COP29 will give a formal nod to carbon markets under the United Nations framework. A major point of negotiation will be Article 6 of the 2015 Paris Agreement, which defines the rules for carbon trading between countries. Though the concept of international carbon markets has been in discussion for years, outstanding technical issues remain regarding how credits will be tracked and accounted for. Clarity will only emerge once negotiations begin next month, the official noted. The decisions taken at COP29 will shape global climate policy and markets, with Indias compliance market poised to play a significant role in driving emissions reductions in energy-intensive industries. (KNN Bureau) 39693 https://knnindia.co.in/news/newsdetails/sectors/india-prepares-to-set-emissions-targets-ahead-of-cop29-in-baku 2024-10-24 15:19:35 knnindia.co.in India Prepares to Set Emissions Targets Ahead of COP29 in Baku