Understanding carbon markets: prospects for India and stakeholder perspectives

The Government of India has passed an amendment to the Energy Conservation Act 2001, which lays the foundation for the Indian Carbon Market. Under this backdrop, CEEW conducted an industry stakeholder discussion to understand their concerns and perspectives. This issue brief deconstructs the two key typologies of carbon markets – project-based/offset and Emission Trading Scheme (ETS) based-market and outlines their key features that determine their environmental integrity and functional boundaries. It further outlines the Indian policy landscape in the context of market-based instruments and recent developments towards the formation of an Indian Carbon Market. Finally, the brief discusses the primary concerns of key Indian stakeholders with the announcement of the Indian carbon market and presents its recommendation.