What is the Indian Carbon Market (ICM)?
The Indian Carbon Market (ICM) is an initiative to develop a national framework for carbon credit trading in India.
What is the Carbon Credit Trading Scheme 2023?
It's a recent notification that outlines the specifics of how carbon credit trading will be conducted within the ICM.
How does the carbon credit trading system work?
The system rewards entities that transition to low-carbon practices by assigning a value, termed as "carbon credit", to each tonne of CO2 equivalent that's reduced or avoided.
How are emissions certified in the ICM?
Companies that surpass their carbon reduction targets will be rewarded with carbon credit certificates, certifying the amount of CO2 equivalent they've reduced or avoided.
What if a company does not meet its carbon reduction target?
Companies that fall short of their targets will have to purchase carbon credit certificates to offset their deficit. If they don't, they may face penalties.
What role do verifiers play in the ICM?
Verifiers are responsible for checking and confirming the amount of CO2 equivalent reduced or avoided by companies, ensuring the integrity of the carbon credit system.
Are there provisions for global verifiers in the scheme?
Yes, global applications for enlisting verifiers for the scheme are being explored.
How will the verifiers be selected or enlisted?
The specifics of the enlistment process are still under consideration, but there will be a focus on exploring global applications for verifiers.
When will the actual trade in the ICM begin?
Actual trading is still in the planning stage and will start sometime in the future, after market codes and regulations have been set
