India urgently needs its own green leap forward
A carbon price on industrial emissions could help with that
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India is expected to be the single largest source of emissions growth between now and 2050 according to the latest Climate Outlook report from Rhodium, published on the eve of COP31. While there are tentative signs that the rate of growth in power generation emissions has slowed, industrial emissions are likely to continue to grow at a break-neck pace.
From November, factory operators obligated under India's Carbon Credit Trading Scheme (CCTS) will be able to buy and sell carbon credit certificates for the first time. The CCTS is a crucial climate policy that should help bend the industrial emissions growth curve and prompt other countries with fast growing emissions to follow India's lead. However, there's some doubt as to whether the CCTS carbon price will ever be a strong and credible 'Currency of Decarbonisation'.
