How the emission trading scheme can aid India in curbing the emissions?
India has an ambitious target of reducing the emission intensity of by 33-35% of GDP from 2005 levels. This requires a multi-dimensional approach from India. Emission trading scheme (ETS) provides a comprehensive approach in this direction.
An ETS is a market-based mechanism wherein a cap is set on the amount of carbon dioxide or other greenhouse gases that can be emitted by covered entities. The emitters can either reduce their emissions to adhere to the cap or buy additional allowances from other entities to compensate for their deficiency. One allowance gives the right to the holder to emit one tonne of carbon.
This mechanism will aid India in reducing emissions by:
- Bottom up approach: India needs an effective participation of its industries to achieve its INDC under Paris climate deal. ETS will ensure the industry led emission reduction programme.
- Objectivity: The ETS scheme will bring more objectivity in India’s fight against climate change. ETS will provide for a benchmark to India for designing the process to achieve the emission reduction targets. ncy will rescue the fight against pollution from the political compulsions by pr
- Transparency: ETS regulated by an Independent age oviding for a transparent and objective process.
India needs to fight the twin challenge of poverty and pollution. India already has high tax slabs for the fossil fuels and its derivatives. Further the scheme like ETS may reduce the cost competitiveness of Indian industries. Indian manufacturing sector is still evolving. Rather than imposing norms India must strengthen its compliance mechanisms through hand holding of Industries to meet the targets. Schemes like Zero effect zero defect can drive the India’s fight against pollution without any adverse impact on the industrial growth.