Indian energy firms join hands to develop a carbon market

India‘sgreen energycompanies, such as Adani Greens, owned by billionaire Gautam Adani’s Adani Group, and carbon offsetters likeEKI Energy Services, have come together to develop a carbon credit market to help achieve energy transition goals.

India is one of the world’s biggest greenhouse gas emitters and it aims to reach net zero emissions by 2070.

Prime Minister Narendra Modi wants India to become an industrial powerhouse while also cutting emissions by 60 million tonnes a year by 2030, highlighting the importance of a robust carbon trading market.

“A domestic market that is formed in unison and close consultation with relevant industry stakeholders can tremendously accelerate the country’s transition to become carbon neutral,” Manish Dabkara, president of the newly formedCarbon MarketAssociation of India, told the media on Tuesday.

Dabkara owns EKI Energy Services, which deals in carbon offsetting business.

The association includes Hero Future Energies, Ayana Renewable Power and global private equity major KKR’s Virescent Infra, among several others.

It aims to act as a mediator between government and industry to facilitate trade of carbon credits which would imply increased carbon neutral growth, Dabkara said.

The lower house of parliament passed an Energy Conservation (Amendment) Bill 2022 in August that seeks to establish carbon trading.

Under a carbon trading scheme, government and private entities can earn carbon credits by reducing their greenhouse gas emissions. The same credits can be bought and sold in markets.