India, the largest exporter of carbon credits, proposes to have its own uniform carbon market in one year as a large finance avenue for energy transition projects and emission reduction.
An analysis by Deloitte Economics Institute showed the country could gain $11 trillion over 50 years by limiting rising global temperatures and realising its potential to 'export decarbonisation' to the world.
The Centre is considering a change in legislation for implementing the carbon trading scheme that will subsume all such present tradeable certificates, sources said. The proposal is also to have a closed market that doesn't allow export of such clean certificates in international carbon markets, sources said.
"The present schemes are very limited as buyers are very limited. Once we open a formal carbon trading market, and we have the conversion factor of every such certificate into how much C02 has been avoided, the market will be very large. The market-determined price would reflect the true picture," a senior government official said.
"Setting up emission targets is not ruled out, but that will not happen soon. The market will let green plants and energy efficient units estimate earnings through carbon trade. This will help boost and finance more such projects," he said.
The government proposes to begin with a voluntary market considering net-zero announcements made by large corporates, he said. A gradual shift to 'cap and trade', where industries are given emission targets like in EU emission trading system markets is proposed.
Under the present Perform, Trade and Achieve scheme, Energy Saving Certificates (ESCerts) are traded. Similarly, renewable energy certificates (RECs) are traded to let entities meet renewable purchase obligations.
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