Syllabus: Conservation, environmental pollution and degradation, environmental impact assessment
Overview:
- The growth-driven development model has pushed planetary boundaries beyond safe limits. Decoupling growth from environmental harm through cleaner technologies and renewable energy offers an equitable path for developing countries.
Concept of Carbon Credits
- A carbon credit represents a certified reduction or removal of greenhouse gases, measured in CO2-equivalents.
- Generated through mitigation activities (renewable energy) and sequestration efforts (reforestation, agroforestry, biochar).
- 175-180 million credits retired annually, primarily from renewable energy and nature-based projects.
India’s Carbon Credit Trading Scheme (CCTS)
- Key Features:
- A carbon credit certifies the reduction or removal of greenhouse gases (GHGs) in COâ‚‚-equivalents.
- These are generated from mitigation activities (renewable energy) or sequestration projects (reforestation, agroforestry, biochar).
- Companies purchase them to offset emissions, enabling transition to low-carbon pathways while benefiting developing countries.
- Global and Indian Carbon Credit Trends
- Globally, 175–180 million carbon credits are retired annually, largely from renewable and nature-based projects (e.g., REDD+, afforestation).
- India is developing its own Carbon Credit Trading Scheme (CCTS), which will:
- Set emission-intensity benchmarks for energy-intensive industries.
- Include voluntary offsets.
- Maintain a national registry and trading platform.
- Draft methodologies already exist for biomass, compressed biogas, and low-emission rice cultivation.
Agriculture’s Limited Participation
- Despite high potential, agriculture-based carbon projects remain underrepresented.
- Research attributes this to poor farmer engagement, lack of training, and weak follow-up especially among smallholders and marginalised caste groups.
Risks of Exploitation in Carbon Markets
- Without safeguards, carbon markets can replicate extractive models and land alienation.
- Example: Northern Kenya Rangelands Project (2012) – bypassed community consent, led to Verra suspensions due to FPIC and land rights violations.
- Lake Turkana Wind Project fenced community lands, restricting grazing access.
Implications for India
- India faces comparable risks in afforestation, reforestation, and agricultural projects that overlap with customary land use.
- Projects on village commons or forest fringes may curtail access to fuelwood, fodder, and forest produce without community approval.
- Evidence shows that marginalised farmers are often excluded from benefits.
- Gaps in India’s CCTS
- While comprehensive on procedures and compliance, the CCTS neglects key social safeguards, such as:
- Land and resource rights,
- FPIC (Free, Prior, and Informed Consent),
- Equitable benefit-sharing mechanisms.
- Power imbalances allow opaque deals and community exclusion.
- While comprehensive on procedures and compliance, the CCTS neglects key social safeguards, such as:
Way Forward: A Balanced Regulatory Approach
- Need a balanced regulatory approach ensuring:
- Transparency in projects.
- Formalised benefit-sharing.
- Protection of community rights.
- Simple yet effective oversight to avoid overregulation.
- Requires stakeholder consultation and adaptive regulation.
Conclusion
- India’s carbon market should integrate climate action with social justice.
- Safeguards must ensure that the transition to low-carbon growth benefits local communities and avoids exploitation.
Q- Discuss the concept of carbon credits and their role in decoupling economic growth from environmental harm. How can India leverage its Carbon Credit Trading Scheme to achieve climate goals while addressing poverty and sustainable development? (10 Marks, 150 words)
