Background and Objective
Despite the hurdles still being faced in implementing activities to mitigate climate change, climate action in India has gained momentum in recent years. The Global Carbon Market project provides support to the Indian Environment Ministry’s climate change department in matters concerning market mechanisms under the Paris Agreement and on climate finance. The main aim of the project is to enhance market-mechanism and carbon pricing expertise among decision makers in the public and private sectors.
Implementation
The project is closely aligned with the National Action Plan on Climate Change (NAPCC) and the targets contained in India’s nationally determined contribution (NDC). By providing advice and support to the project partners it contributes both to the market mechanisms debate and to their development in India under the Paris Agreement’s Article 6. The project team advises the ministry on the new market mechanisms under Article 6, on national, regional and local-level climate action plans, and on matters concerning the climate change negotiations.
Another important focus area involves the development of climate finance instruments to help leverage private investment through public funding. The Global Carbon Market project team organises expert workshops and other technical events in collaboration with private-sector start-ups, small and medium-sized enterprises (SMEs) and publicly-owned companies. Here, focus is placed on corporate social responsibility activities, domestic carbon pricing and the development of innovative pilot projects for the voluntary offset market. The project also fosters and supports the creation of strategic carbon market alliances in India, working with other stakeholders such as the Partnership for Market Readiness (PMR) and the Transformative Carbon Asset Facility (TCAF).
Milestones and Outlook
As part of the project, broad-based training on market mechanisms, climate finance instruments and carbon pricing has been provided for stakeholders in the public and private sectors. For example, training modules on voluntary carbon markets were developed for small and medium-sized enterprises (SMEs). Support was provided in the development of voluntary offsetting projects in the municipal waste management sector. With studies, dialogue forums, stakeholder consultations, feasibility studies and market analyses, the project has fostered a better understanding among policy-makers of the various components of Article 6.