The CMD of EKI Energy Services, Manish Dabkara, says that the carbon credit community anticipates two or three clear guidelines from COP29. The first guideline concerns Article 6.2 of the Paris Agreement, where nations can sign MOUs to collaborate on carbon credit generation and distribution.
Guidelines for Carbon Markets
Another expectation, according to Dabkara, is the issuance of guidelines under Article 6.4 related to methodologies, registration, verification, and the transition of carbon credits from the Clean Development Mechanism. He believes this will open up a significant market.
Voluntary Carbon Markets
Once the guidelines for Articles 6.2 and 6.4 are in place, Dabkara predicts a boost to the voluntary carbon market, which is currently facing concerns about carbon credit quality and greenwashing. With clearer regulations, this market is expected to gain significant traction.
Incentivising Private Sector
Dabkara notes that the Paris Agreement’s framework incentivises private sector involvement in international carbon markets, particularly through cross-border trading under Articles 6.2 and 6.4. This allows companies to invest in government-initiated green projects, contributing to mobilizing investments and enhancing market credibility.
India’s Path to NDCs
He emphasises that, following COP29, India’s carbon market structure, comprising four layers—international compliance, national compliance, national voluntary, and international voluntary—will support India’s progress toward its Nationally Determined Contributions (NDCs).
India’s Carbon Market Strategy
Dabkara suggests that India’s carbon market will function smoothly with clear targets, auditing rules, and guidelines for sector expansion. India has already introduced various schemes, such as the Renewable Purchase Obligation Act and the Perform, Achieve and Trade scheme, which contribute to achieving its climate targets.
Initiatives for Circular Economy
According to him, the Indian government is also working on implementing Extended Producer Responsibility (EPR) rules, targeting the recycling of various types of waste, such as plastic, tyres, and batteries. This initiative further supports India’s NDC goals, alongside policies focused on renewable energy, emission intensity reduction, and forest cover expansion.
Dabkara believes India is well-positioned to achieve its NDC ahead of the target year, thanks to its emission trading schemes, offset mechanisms, and policies supporting renewable energy, forest cover, and emission reductions.
