Project activities in India have been concluded in 2022.
Background and Objective
The Global Carbon Market project provided support to the Indian Environment Ministry’s climate change department in matters concerning market mechanisms under the Paris Agreement and on climate finance. The project aimed to enhance market-mechanism and carbon pricing expertise among decision makers in the public and private sectors.
Implementation
The project was closely aligned with the National Action Plan on Climate Change (NAPCC) and the targets contained in India’s nationally determined contribution (NDC). By providing advice and support to the project partners it contributed both to the market mechanisms debate and to their development in India under the Paris Agreement’s Article 6. The project team advised the ministry on the new market mechanisms under Article 6, on national, regional and local-level climate action plans, and on matters concerning the climate change negotiations.
Another important focus area involved the development of climate finance instruments to help leverage private investment through public funding. The Global Carbon Market project team organised expert workshops and other technical events in collaboration with private-sector start-ups, small and medium-sized enterprises (SMEs) and publicly-owned companies. Here, focus was placed on corporate social responsibility activities, domestic carbon pricing and the development of innovative pilot projects for the voluntary offset market. The project also fostered and supported the creation of strategic carbon market alliances in India, working with other stakeholders such as the Partnership for Market Readiness (PMR) and the Transformative Carbon Asset Facility (TCAF).
Milestones and Outlook
As part of the project, broad-based training on market mechanisms, climate finance instruments and carbon pricing has been provided for stakeholders in the public and private sectors. For example, training modules on voluntary carbon markets were developed for small and medium-sized enterprises (SMEs). Support was provided in the development of voluntary offsetting projects in the municipal waste management sector. With studies, dialogue forums, stakeholder consultations, feasibility studies and market analyses, the project has fostered a better understanding among policy-makers of the various components of Article 6.