Carbon trading market likely in India

As part of its efforts to hasten the transition to cleaner fuels, India is likely to introduce a carbon trading market for major emitters in the energy, steel and cement industries.

The platform is expected to be announced by Prime Minister Narendra Modi at Independence Day celebrations on August 15.

The market would initially be limited to hard-to-abate sectors, allowing participants to trade credits earned from cutting emissions, the people said. One of the goals is to ensure state-owned energy firms like Oil & Natural Gas Corp., Indian Oil Corp. and NTPC Ltd., as well as steel and cement companies, can benefit from planned investments in carbon-capture projects.

A detailed plan for establishing the carbon market is likely to be ready in the fourth quarter. India is also looking to introduce methanol-blended fuels in land and marine transport, build more carbon capture projects, and encourage the adoption of electric vehicles as part of its climate goals.