India to bolster carbon trading market with stabilisation fund
The Hindu
Stabilisation fund said to make carbon credits attractive
India is planning a stabilisation fund to keep prices of credits in its planned carbon market above a certain threshold, ensuring that they remain attractive for investors and that the market succeeds in cutting emissions, two government sources said.
Money in the fund would be used by a market regulator to buy carbon credits if prices fell too low, one of the officials said.
Consistent investor interest in credits and a floor under the price would be needed because sharp falls in the market could discourage industries from reducing carbon dioxide emissions, that official added.
Planning envisages the market becoming fully operational in 2026, covering 37% of the country's emissions, according to slides, seen by Reuters, that the Power Ministry has shown to stakeholders. The sources said the government intended to publish the market's rules soon.
Details would be announced next year, said a third person, Samrat Sengupta, vice-president for new businesses and market strategy at carbon offsetter EKI Energy Ltd, which has been briefed by the government.
In creating a carbon market, a country sets a limit on emissions and then allocates a corresponding quantity of tradable permits, or credits, to emitters. The quantity reduces over time. If a company wants to emit more, it can buy more credits at the market price, but it will also consider whether constraining or even cutting its emissions might more profitable.
The source said the federal government would set up the stabilisation fund. Exactly how it would work and where the money would come from was still under discussion.
Flight AI177 will depart Bengaluru at 1.05 p.m. and arrive at London Gatwick at 7.05 p.m. (local time). From London Gatwick, flight AI178 will depart at 8.35 p.m. (local time) and arrive in Bengaluru at 10.50 a.m. (next day arrival). From Bengaluru, the flight will operate on Mondays, Wednesdays, Thursdays, Fridays and Sundays.