Context:
Ministry of Power announced reforms in Carbon Credits Trading Scheme (CCTS) recently.
- Ministry notified the CCTS in June 2023, to develop the Indian Carbon Market framework, under the Energy Conservation Act, of 2001.
Carbon Credits Trading Scheme (CCTS):
- Provides to set up a carbon credit trading market as the country aims at decarbonizing the economy.
- Carbon markets are a tool for putting a price on carbon emissions.
- They establish trading systems where carbon credits or allowances can be bought and sold.
- A carbon credit is a kind of tradable permit that equals one tonne of carbon dioxide removed, reduced, or sequestered from the atmosphere.
Major reforms:
- Bureau of Energy Efficiency (BEE) to develop the standards and register the project under an offset mechanism.
- BEE would “validate” carbon credits, as opposed to only “verification” in the original framework.
- Allowed ‘non-obligated entities’ (Non-OEs) (purchase the carbon credit certificates voluntarily) to also register decarbonization projects and generate carbon credits.
- Significance –
- The inclusion of Non-OEs further deepens the Indian carbon credit market.
- Indian entities won’t have to go to overseas standards agencies to validate their carbon credits.
- Foreign decarbonization projects might choose India for certification.
Source: The Hindu
Previous Year Question
Consider the following activities:
1. Spreading finely ground basalt rock on farmlands extensively
2. Increasing the alkalinity of oceans by adding lime
3. Capturing carbon dioxide released by various industries and pumping it into abandoned subterranean mines in the form of carbonated waters
How many of the above activities are often considered and discussed for carbon capture and sequestration?
[UPSC Civil Services Exam – 2023 Prelims]
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (c)
