India is set to establish carbon emission reduction targets for four carbon-intensive sectors: petrochemicals, iron and steel, cement, and pulp and paper. Companies in these sectors will have carbon emission intensity benchmarks and reduction targets for three years, with annual trading cycles. These companies are expected to be the first to participate in India's carbon trading market starting from April 2025. The carbon credits earned by companies exceeding their targets can be traded with firms falling short of their goals. India aims to align these targets with its greenhouse gas emissions reduction goals submitted to the United Nations, which include reducing emissions to 45% of 2005 levels by 2030 and reaching net-zero emissions by 2070. The proposed carbon market differs from those in developed countries, which allocate tradable permits or credits to emitter industries after setting emission limits. The rules and targets for these sectors are expected to be announced before December.

Source: Reuters