Profiteering from Pollution ~ a review of the central government’s policy paper on carbon credits

 Profiteering from Pollution ~ a review of the central government’s policy paper on carbon credits

India’s Carbon Market Is Here

A Turning Point for Industry & Climate Policy

Real. Mandatory. Monetizable.

Prof Archie D’Souza

https://acrobat.adobe.com/id/urn:aaid:sc:AP:6eca22a1-0056-498a-a6c0-71cd03738f6d

Are you a polluter, and do you wish to continue polluting? The title of this policy paper tells you that not only can you continue being a polluter, you can buy your way to continue polluting. This is exactly how carbon credits work. Here is a policy document that does not even pretend to stop pollution, it tells you how to profit from it.

Let’s look at some of the highlights of the policy:

·        Supports India’s ambitious Net Zero 2070 goals, aligning industrial activity with national climate commitments.

·        Helps Indian exports avoid the impending EU Carbon Border Adjustment Mechanism (CBAM), maintaining global market access.

·        Incentivizes adoption of clean technology and robust ESG reporting, enhancing corporate reputation and investor appeal.

·        Creates new demand for specialized services, fostering growth in Sustainability Consultants, MRV Experts, and Climate Startups.

·        Fundamentally redefines value: making pollution expensive and sustainability profitable.

[Emphasis is in the original document]

So, where do we go from here? The policy says that the Carbon Credit Trading Scheme (CCTS) significantly impacts 286 companies, with specific 3-year targets notified for each. These sectors include:

·        Iron & Steel

·        Cement

·        Textile

·        Petrochemicals

·        Aluminium

·        Fertilizer

·        Paper

Here according to the paper is how it works:

Step 1: The Government Sets Targets

The government establishes sector-wise Greenhouse Gas Emission Intensity (GEI) targets (tCO¢e/unit of production) for covered industries.

Step 2: Emission Performance

Industries emitting less than their GEI target earn tradable carbon credits. Those emitting more must buy credits or face penalties.

Step 3: Market Trading

Carbon credits are traded on the India Carbon Market (ICM) Portal, facilitating compliance and creating a dynamic market. ä BizTech Advisors can help navigate every step of this process, ensuring seamless compliance

So easy for the polluter. So it says one can work on Empowering Indian Businesses for a Green Future. This is the title of a section which claims that you can be helped to get your company climate-ready and turn compliance into a competitive advantage. Wow! And, it’s done beautifully using the following:

GEI Baseline Audit & Calculation

Accurate assessment of your current greenhouse gas emission intensity.

ICM Registration & Documentation

Streamlined process for registration and managing all necessary paperwork.

Carbon Credit Banking Strategy

Optimizing your credit portfolio for maximum value and future compliance.

Compliance Monitoring & Reporting

Continuous oversight to ensure adherence to regulations and timely submissions.

ESG + CDP + BRSR Integration

Holistic integration of carbon compliance with broader sustainability reporting frameworks.

We had looked at the initial steps.

Let’s look at the next set of steps. This is how you go about it:

Proactive Engagement for a Sustainable Future

1. Assess Your Position

Are you currently above or below your mandatory GEI target? Understanding

your baseline is crucial for strategic planning.

2. Evaluate Future Risks

Have you assessed your emission risk for FY 2026-27 and beyond? Proactive risk assessment can prevent costly penalties.

3. Develop Your Strategy

Have you built a clear plan for earning credits or managing offsets? A robust strategy is key to monetizing sustainability efforts.

Conclusion

To conclude, I ask a question ~ will the monetization of carbon credits lead to a reduction in pollution? I leave the reader to answer the question.