20th July 2024 (10 Topics)
1
Jul
2
Jul
3
Jul
4
Jul
5
Jul
6
Jul
8
Jul
9
Jul
10
Jul
11
Jul
12
Jul
13
Jul
15
Jul
16
Jul
17
Jul
18
Jul
19
Jul
20
Jul
22
Jul
23
Jul
24
Jul
25
Jul
26
Jul
27
Jul
29
Jul
30
Jul
31
Jul
India-Japan Collaboration for Carbon Trading
Context
India and Japan are exploring a Joint Crediting Mechanism (JCM) under the Paris Agreement to enhance collaboration in Carbon Trading.
What is Carbon Trading?
- Carbon trading is the process of buying and selling permits and credits to emit carbon dioxide.
- Article 6 of the Paris Agreement provides for the use of international carbon markets by countries to fulfil their Nationally determined contributions (NDCs).
- These markets create incentives to reduce emissions or improve energy efficiency.
- Types of Carbon Markets:
|
Voluntary Markets |
Compliance Markets |
|
|
Advantages of Carbon Markets:
- Promotion of Energy Efficiency: Incentivizes reduction in energy use and transition to cleaner fuels.
- Cost-Efficiency: Companies can choose between investing in emission-reducing technologies or purchasing allowances, based on cost-effectiveness.
- Innovation: Encourages innovation and adoption of low-carbon technologies due to regulatory pressure and market incentives.
Challenges to Carbon Markets:
- Effectiveness Concerns: Some entities may buy credits without reducing emissions themselves, undermining the actual reduction of greenhouse gases.
- Quality Issues: Many credits available may not meet quality standards, lacking additionality (additional emission reductions), verifiability (proper auditing), and permanence (ensuring emission reductions are sustained).
- Deviating Emission Reduction Efforts: Purchasing credits might divert attention from genuine efforts to reduce emissions directly.
- Measurement Difficulty: It's challenging to accurately quantify emission reductions achieved through offset projects like afforestation or renewable energy initiatives.
More Articles
Courses
Study
Notes
Home
Resources
More
