ES Ranganathan: How International Carbon Credit Trading Can Propel India's Climate Ambitions
India's goal to achieve net-zero emissions by 2070 has led it to explore new ways to reduce carbon emissions. With climate change becoming a global concern, countries worldwide are working to reduce their carbon footprint and adopt more sustainable practices.
A major development in India comes from the Power and New & Renewable Energy Ministry, which is considering allowing overseas trading of carbon credits linked to Green Hydrogen. Mr. ES Ranganathan says, "India is a dynamic and diverse nation with a rapidly growing economy. This growth has led to an increase in carbon emissions, especially from the energy and industrial sectors." He explained the benefits of this move: "Trading carbon credits internationally can speed up India's efforts to reduce emissions. By buying carbon credits from other countries, India can more effectively offset its emissions, particularly in sectors where reducing emissions is difficult."
Carbon credits, also known as carbon offsets, are a market-based system that allows organizations or countries to compensate for their carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere. These projects can include reforestation, renewable energy, and improved industrial processes. Carbon credits help encourage emissions reductions and promote sustainability.
ES Ranganathan adds, "India has made significant progress towards clean energy, such as increasing renewable energy capacity, implementing energy efficiency measures, and setting ambitious targets for electric vehicle adoption."