The voluntary Carbon Market (VCM) in India
The voluntary Carbon Market (VCM) in India will be done in a phased manner. The following is a summary of the proposed approach for the creation of the VCM in India.
Phase 1: Development of a framework
The first phase involves the development of a framework for the voluntary carbon market. This includes the formulation of policies, regulations, and guidelines for the functioning of the VCM. The framework should establish the eligibility criteria for voluntary entities, the modalities for registration and accreditation, and the guidelines for the issuance, trading, and retirement of carbon credits. The policy framework will need to define the types of carbon credits that can be generated, such as those related to energy efficiency, renewable energy, and other low-carbon initiatives.
Phase 2: Capacity Building
The second phase involves the capacity building of various stakeholders, including voluntary entities, project developers, financial institutions, and verifiers. This includes the training of potential project developers to access the VCM and register projects, financial institutions to provide funding for these projects, and verifiers to certify the carbon credits generated.
Phase 3: Launch of the VCM
The third phase involves the launch of the VCM in India. The launch will involve the registration of voluntary entities and project developers, and the issuance of carbon credits. The VCM platform will facilitate the trading of carbon credits between buyers and sellers. The platform will also provide transparency in the process, including tracking the issuance, trading, and retirement of carbon credits.
Phase 4: Scaling up
The fourth phase involves scaling up the VCM in India. This includes the expansion of the VCM beyond the PAT program and its coverage of other sectors, such as agriculture, forestry, and transportation. The scaling up of the VCM will require the development of new policies, regulations, and guidelines, as well as the capacity building of stakeholders in these sectors.
The development of a voluntary carbon market in India is a step towards meeting the country’s climate change commitments. The proposed phased approach for the creation of the VCM in India is a systematic way to develop a functional carbon market. The framework for the VCM will need to be developed in consultation with various stakeholders, and the implementation will require the participation of multiple actors. The success of the VCM will depend on the adoption of policies and regulations that are conducive to the development of a robust and transparent carbon market.