Indian Energy Exchange (IEX)

Government plans to bring in final design of Carbon Credit Trading Scheme in 2 weeks, says Power Secretary Alok Kumar.

What would it mean for IEX or International Carbon Exchange (ICX) specifically?

Following is the extract from the Ministry of Power’s Carbon Credit Trading Scheme (CCTS) which talks about potential excahnge for Indian Carbon Market (ICM)

The Commission would approve the participation of power exchanges for Indian Carbon Market (ICM) trading, and the power exchanges must seek approval for their bylaws and rules from the Commission. The power exchanges will perform functions related to the trading of CCCs as per the Commission’s regulations

Remember IEX’s ICX will be the platform for the carbon credits in the compliance market.This mandatory market is expected to be much bigger than the Voluntary Carbon Market (VCM).

What Mr. Goel had said in past interviews

• The Indian government may still have to issue clarifications about the distinction of credits for the VCM and compliance market

• They will probably merge Energy Saving Certificates (EScerts) or a part of it” with carbon credits. Will have to see what the Government does in coming weeks.

• Renewable Energy Certificates (RECs) will be separate for now until the renewable purchase obligations timelines expire, making them eligible to be merged into carbon credits later

There is currently no centralized voluntary carbon market. Instead, project developers, or companies can sell their credits directly to buyers or through a broker. I feel this is a great oppotunity for IEX, WIll have to wait and see the final design of the Carbon Credit Trading Scheme.

Disc: Invested, biased.
Source: CNBC TV 18 Twitter Handle