The inaugural International Conference on Carbon Markets, Prakriti 2025, was held in New Delhi on February 24-25, 2025, marking an important milestone in India’s climate action agenda. Hosted by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, the conference welcomed over 600 delegates, including policymakers, industry leaders, researchers, and international experts, to engage in discussions about the future of carbon markets in India. The focus was on developing a structured carbon market to support India’s shift towards a low-carbon economy while ensuring transparency, sustainability, and collaboration among industries.
Why Is India Focusing on Carbon Markets Now?
India has been taking steps to decrease carbon emissions as part of its commitment to international climate goals. During the event, Union Minister for Power and Housing & Urban Affairs, Shri Manohar Lal, emphasized the vital role of carbon markets in emission control. He mentioned that India is moving away from fossil fuels and is increasingly adopting renewable energy solutions. He also pointed out the cultural significance of sustainability in India, referencing practices like Ganga Deep Puja and Govardhan Puja that promote environmental consciousness. The Minister further highlighted the need for transparent and verifiable mechanisms for carbon reduction to ensure accountability.
How Will the Indian Carbon Market (ICM) Work?
The Indian Carbon Market (ICM) is expected to operate in a phased manner, as explained by Shri Akash Tripathi, Additional Secretary of the Ministry of Power. The initiative aims for a 40% reduction in emissions by 2027, with full implementation targeted for 2030. This carbon market will enable businesses to trade carbon credits, encouraging companies to lower their emissions and shift towards cleaner energy options. This strategy ensures that industries can achieve national climate goals in a cost-effective manner. The effectiveness of this system will hinge on clear regulations, market stability, and active engagement from industries.
