Carbon market framework likely in two weeks

New Delhi: The much-anticipated norms and the framework for the carbon market is expected to be rolled out within a fortnight.

Addressing the media, union minister for power and new & renewable energy RK Singh said: “For carbon market, we have already got the legislation enacted by the parliament and the rules have been drafted. They were circulated for comments. Now the rules will be issued very soon.”

Power secretary Alok Kumar said that the government is hopeful that the final design and the architecture of the carbon market would be ready within two weeks.

The rules will establish the institutional framework and mechanisms for the functioning of the market. 

In March, the union ministry of power released the draft Carbon Credit Trading Scheme and sought comments from stakeholders. The Energy Conservation (Amendment) Act, 2022 provides for carbon trading scheme, obligations framework for new fossil energy or feedstock, and brings in large buildings under energy conservation and sustainable building code.

The ministry, in the draft proposed to set up an Indian Carbon Market Governing Board with the secretary for the ministry of environment, forest and climate change as its chairperson for direct oversight of its administrative and regulatory functioning of the market.

Outlining, the progress in the country’s power sector over the past nine years under the NDA government, Singh said that India added 186 GW of power generation capacity since 2014 to a total of 416 GW today. 

“Power shortage came down from 4.2% of the energy requirement in 2014 to the technical minimum of 0.2% in May 2023,” he said.

He reiterated that India will not compromise on its energy security and may add new thermal power plants if required.

Talking of the growth in the renewable energy growth, he said: “The installed capacity of renewable energy was 76.4 GW in 2014, it has gone up to 172 GW. And, then there are 144 GW of projects that have either been bid out or are under construction, taking the total of non-fossil capacity to 323 GW.”