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With India's recent announcement on a roadmap and action plan for the creation and selling of carbon credits in the global market, in compliance with Article 6.2 of the Paris Agreement, the domestic carbon credit market is set to boom in the coming years, say experts.

India is a significant exporter of carbon credits and has issued 278 million credits in the voluntary carbon markets between 2010 and 2022, accounting for 17% of the global supply.

The Taskforce on Scaling Voluntary Carbon Markets (TSVCM), sponsored by the Institute of International Finance (IIF) with knowledge support from McKinsey, estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050.

Globally more companies are aligning themselves with the net zero goals. The number of companies with net-zero pledges doubled from 500 in 2019 to more than 1,000 by 2020. About 2200 global corporations, including some major global corporations, have pledged their net zero goals by the end of 2022. That is going to open up a huge global market for carbon credits from the current $2 billion to $50 billion by 2030. Carbon credits retirements have grown at a CAGR of 35% over the past five years and are expected to at least triple in this decade and India is going to be a leader in generating and selling carbon credits, says Manish.

The Union Environment Ministry recently came up with a list of priority sectors to attract green investments and these include renewable energy with storage, solar thermal power, off-shore wind, green hydrogen, compressed biogas, emerging mobility solutions like fuel cells, high-end technology for energy efficiency, sustainable aviation fuel, and best available technologies for process improvement in hard-to-abate sectors chloralkali, petrochemicals, thermal power plants and petroleum refineries.

Source:https://www.fortuneindia.com/macro/india-to-lead-50-bn-global-carbon-credits-market-by-2030/112024