India's national emissions trading system is set to begin operating within the next two years, covering approximately 15 percent of the country's emissions by 2030. The system will initially include heavily polluting industries like steel, cement, paper and pulp, petrochemicals, and aluminum, depending on their readiness. However, the power sector, which relies on coal for about 70 percent of electricity generation, may not be part of the system. India is implementing other mechanisms, such as renewable purchase obligations and trading of renewable energy certificates, to drive decarbonization in the power sector. The emissions trading system aims to encourage major industrial polluters to reduce their carbon footprint and adopt clean energy technologies like green hydrogen and carbon capture.

Source: Moneycontrol