Assessing Ambition of India's Carbon Credit Trading Scheme Targets
The Indian government announced greenhouse gas emissions intensity targets for eight heavy industrial sectors under its Carbon Credit Trading Scheme (CCTS). The article argues that the ambition of these targets should be assessed at an aggregate economy-wide level rather than individual entity or sector levels, drawing parallels with the successful Perform, Achieve and Trade (PAT) scheme. While industry-specific CCTS targets cannot be directly compared with economy-wide Nationally Determined Contributions (NDC) targets, modelling suggests that the manufacturing sector's emissions intensity is projected to decline at a slower pace (2.53% annually) than the energy sector (3.44%) between 2025-2030. The current combined average annual EIVA reduction for the eight sectors under CCTS is estimated at 1.68% for 2023-27, suggesting the industrial targets might not be ambitious enough.
Key Points
- India has set greenhouse gas emissions intensity targets for eight heavy industrial sectors under its Carbon Credit Trading Scheme (CCTS).
- The article advocates for assessing the ambition of these targets at an aggregate economy-wide level, similar to the PAT scheme's success.
- Current projections indicate that India's manufacturing sector may decarbonise at a slower rate compared to the power sector.
- Early estimates suggest that the industrial targets under CCTS might not be sufficiently ambitious to align with India's broader climate goals.
Exam Facts
- India's Carbon Credit Trading Scheme (CCTS) covers eight heavy industrial sectors.
- The Perform, Achieve and Trade (PAT) scheme is India's flagship energy efficiency programme.
- India's 2030 NDC-aligned emissions reduction scenario projects a 3.44% average annual decline in CO2 emissions intensity for the energy sector (2025-2030).
- The manufacturing sector's emissions intensity (EIVA) is projected to decline by 2.53% annually (2025-2030).
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