Carbon credit export may be allowed, framework with Japan in offing

New Delhi, Aug 4, 2023

India is working on a framework for carbon credit export with Japan and is looking at extending the facility to other countries that buy green hydrogen (GH2) from it, power and renewable energy minister R K Singh told reporters on Friday.

“We are working on selling carbon credits outside India, specially for those who are buying green hydrogen for us. Japan has sent us a draft on carbon trading. And we seem satisfied with it. We would most likely proceed with it,” he said.

The government had on August 8, 2022 revised the carbon credit policy to ban international trading of carbon credits generated by Indian companies to support the domestic carbon credit market.

Singh said the government was open to exploring overseas trading options for carbon credits generated through other renewable power sources such as solar and wind projects.

“In other renewable sectors, which also generate carbon credit, we could look at similar trading options at a later stage,” Singh added.

Carbon markets are one of the drivers of reducing emissions, offering the lowest-cost emission reductions. It is estimated that India can avert a loss of $35 trillion because of unmitigated climate change over the next 50 years by allowing carbon credit exports.k

[The Times of India]