Environment ยท GS3
Expanded targets under the Indian Carbon Market
One line
The government notified greenhouse-gas emission-intensity targets for 208 additional industrial entities under the Carbon Credit Trading Scheme.
Summary
The compliance market assigns emission-intensity targets to covered industries. Entities that beat their targets can receive tradable carbon-credit certificates, while entities that miss them may need certificates to comply.
PYQ pattern
UPSC frequently tests market-based environmental instruments, the difference between intensity and absolute targets, and the institutions involved. See the official UPSC question-paper archive.
Core notes
- The new coverage included petroleum refineries, petrochemicals, textiles, and secondary aluminium.
- Together with the earlier notification, the compliance mechanism covered 490 obligated entities.
- Emission intensity measures emissions per unit of output. It differs from an absolute emissions cap.
- The Carbon Credit Trading Scheme has a compliance mechanism and an offset mechanism.
Prelims lens
- The Bureau of Energy Efficiency has a central administrative role in the Indian Carbon Market.
- The Central Electricity Regulatory Commission regulates trading activity on the market platform.
- A lower emission intensity can coexist with higher total emissions if output grows quickly.
MCQ 1
Consider the following statements:
- Emission intensity refers to emissions per unit of output.
- An intensity target always fixes total emissions at an absolute level.
- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2
Reveal answerHide answer
A
Statement 1 is correct. Total emissions can still change with the volume of production.
MCQ 2
Under the compliance mechanism, an obligated entity that outperforms its target may:
- A. Receive carbon-credit certificates
- B. Issue currency
- C. Amend the Environment Protection Act
- D. Set electricity tariffs for every state
Reveal answerHide answer
A
Eligible over-performance can produce certificates that may be traded under the scheme.
Mains
Question, 10 marks, 150 words: Evaluate the strengths and limits of emission-intensity trading as a tool for industrial decarbonisation in India.
Approach:
- Define intensity targets and certificate trading.
- Explain flexibility, price discovery, and incentives for efficiency.
- Discuss baseline quality, verification, price volatility, and total-emissions growth.
- Suggest strong monitoring, transparent registries, sector pathways, and periodic tightening.