{"id":132693,"date":"2024-09-18T19:25:05","date_gmt":"2024-09-18T13:55:05","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=132693"},"modified":"2024-09-19T16:56:07","modified_gmt":"2024-09-19T11:26:07","slug":"china-carbon-market","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/china-carbon-market","title":{"rendered":"China\u2019s Carbon Market"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">China is seeking<\/span><b> public feedback<\/b><span style=\"font-weight: 400;\"> on a plan to <\/span><b>include cement, steel, and aluminium production in its carbon emissions trading scheme (ETS)<\/b><span style=\"font-weight: 400;\"> by the end of the year, in an attempt to boost market liquidity.<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Carbon Market\u00a0<\/b><\/span><\/h2>\n<ul>\n<li><b>About:<\/b><span style=\"font-weight: 400;\"> Carbon markets are systems designed to help control and reduce greenhouse gas emissions by assigning a price to carbon dioxide (CO2) emissions.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">They function by allowing the trade of carbon credits or allowances between entities that emit CO2 and those that reduce or sequester it.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Carbon Credits:<\/b><span style=\"font-weight: 400;\"> Carbon credits are <\/span><b>tradable permits<\/b><span style=\"font-weight: 400;\"> that represent the <\/span><b>removal, reduction, or sequestration of one tonne of carbon dioxide from the atmosphere.<\/b><span style=\"font-weight: 400;\"> The value of a carbon credit is measured according to United Nations standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Carbon Allowances (Caps): <\/b><span style=\"font-weight: 400;\">Carbon allowances, or caps, <\/span><b>are limits set by governments or countries based on their emission reduction targets.<\/b><span style=\"font-weight: 400;\"> These caps regulate the total emissions allowed, creating a framework for trading.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"nofollow noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<h3><span style=\"font-size: 16pt;\"><b>History of Carbon Trading<\/b><\/span><\/h3>\n<ul>\n<li><b>Kyoto Protocol:<\/b><span style=\"font-weight: 400;\"> Carbon trading was<\/span><b> formally introduced in 1997 <\/b><span style=\"font-weight: 400;\">under the <\/span><b>United Nations\u2019 Kyoto Protocol,<\/b><span style=\"font-weight: 400;\"> establishing a global framework for emissions trading. The Kyoto Protocol introduced the following mechanisms:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Introduction of \u2018Cap and Trade\u2019:<\/b><span style=\"font-weight: 400;\"> The <\/span><b>Kyoto Protocol introduced the concept of &#8220;cap-and-trade,&#8221;<\/b><span style=\"font-weight: 400;\"> where countries were <\/span><b>allocated emission limits<\/b><span style=\"font-weight: 400;\">, and carbon credits could be traded among them.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Introduction of Clean Development Mechanism (CDM)<\/b><span style=\"font-weight: 400;\">: It <\/span><b>enables developed countries to invest in emission reduction projects in developing nations<\/b><span style=\"font-weight: 400;\"> and earn <\/span><b>carbon credits<\/b><span style=\"font-weight: 400;\">, which they could use to meet their own targets.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Carbon Market in India<\/b><\/span><\/h2>\n<ul>\n<li><b>Indian Carbon Market (ICM) Initiative: <\/b><span style=\"font-weight: 400;\">The Government of India is planning to establish the<\/span><b> Indian Carbon Market (ICM)<\/b><span style=\"font-weight: 400;\"> with a national framework aimed at<\/span><b> decarbonizing the domestic economy.<\/b><\/li>\n<li><b>Carbon Credits Trading Scheme (CCTS):<\/b><span style=\"font-weight: 400;\"> The CCTS is a <\/span><b>unified Indian Carbon Market (ICM) <\/b><span style=\"font-weight: 400;\">established to<\/span><b> reduce GHG emissions<\/b><span style=\"font-weight: 400;\"> through the <\/span><b>trading of carbon credit certificates.\u200b <\/b><span style=\"font-weight: 400;\">Obligated entities will have GHG emission intensity targets and will receive or purchase carbon credit certificates based on their performance.\u00a0<\/span><\/li>\n<li><b>Market Based Emission Reduction Scheme: <\/b><span style=\"font-weight: 400;\">India currently<\/span><b> operates two market-based emission reduction schemes<\/b><span style=\"font-weight: 400;\">: the <\/span><b>Perform, Achieve and Trade (PAT) scheme<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>Renewable Energy Certificates (REC) system.<\/b>\n<ul>\n<li><b>Perform, Achieve and Trade (PAT) scheme aims at reducing Specific Energy Consumption (SEC)<\/b><span style=\"font-weight: 400;\"> i.e. energy use per unit of production for Designated Consumers (DCs) in energy intensive sectors, with an associated market mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded.<\/span><\/li>\n<li><b>Renewable Energy Certificate (REC)<\/b><span style=\"font-weight: 400;\"> mechanism is a <\/span><b>market based instrument<\/b><span style=\"font-weight: 400;\"> to <\/span><b>promote renewable energy and facilitate compliance of renewable purchase obligations (RPO)<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the renewable purchase obligation (RPO).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><b>Panchamrit Pledge: <\/b><span style=\"font-weight: 400;\">Recognising a moral responsibility towards a greener planet, India took the<\/span><b> Panchamrit Pledge with targets till 2030 and India being carbon-neutral by 2070.<\/b><\/li>\n<li><b>CBDR-RC principles:<\/b><span style=\"font-weight: 400;\"> As highlighted during the COP 27, India balances its developmental needs with lower carbon emissions through <\/span><b>Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) principles.\u00a0<\/b><\/li>\n<li><b>Energy Conservation (Amendment) Act, 2022:<\/b><span style=\"font-weight: 400;\"> It came into effect in 2023. This act allows the ministry of power and central government authority to create and manage\u00a0 carbon trading schemes and issue Carbon Credit Certificates.<\/span><\/li>\n<li><b>Carbon Credit Certificates: Under section 14AA Act,<\/b><span style=\"font-weight: 400;\"> the government <\/span><b>can issue carbon credit certificates to entities that follow carbon credit trading schemes<\/b><span style=\"font-weight: 400;\">. These certificates can be sold to\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The organisations that <\/span><b>emit more levels of Carbon than authorised;\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>Government of India<\/b><span style=\"font-weight: 400;\"> to fulfil its commitments;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Other nations<\/b><span style=\"font-weight: 400;\"> that need help to fulfil their commitments<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<table style=\"width: 100.03%;\">\n<tbody>\n<tr>\n<td style=\"width: 137.943%; 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