India Sets Carbon Targets to Kickstart Domestic Market, Faces Design Challenges Ahead
In a significant move toward launching its domestic carbon market, the Indian government has announced the first set of emission reduction targets under the Carbon Credit Trading Scheme (CCTS). While the initial compliance year opts for relatively modest reductions, the government has signaled a steeper decarbonisation trajectory in the years ahead. The strategy appears calibrated to avoid cost shocks in the early phase while nudging industries toward energy efficiency and cleaner technologies.
Gradual Targets, Long-Term Vision
The Ministry of Environment, Forest and Climate Change (MoEF&CC) has adopted a cautious approach for the first year, easing industries into the compliance regime. However, starting in the second year, targets are expected to become more stringent, comp...
