Voluntary Carbon Market (VCM) and Carbon Trading
Dr. Raja Krishna Murthy Morla
Two decades of experience in Government, CSR, Corporate - Action Research | Policy & Advocacy | NbS | LCA | Carbon Credits | ESG | Good Governance | MEL | Rural Livelihoods | Regen Agriculture | Allied Sectors
India’s VCM has attained a valuation of $1.2 billion, featuring 1,451 projects registered under prominent registries such as Verra and Gold Standard. India is currently the second-largest global supplier of carbon offsets, supplying a sizable share of all global credits. Huge demand for high-integrity carbon credits, that create real, verifiable climate impact, based on the latest technologies and best practices.
The nation's crediting initiatives must follow core carbon principles.
Core Carbon Principles:
1.????? Effective Governance
2.????? Tracking
3.????? Transparency
4.????? Robust independent third-party validation and verification
5.????? Emission impact
6.????? Additionality
7.????? Permanence
8.????? Quantification of emission reduction and removal
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9.????? No double counting
10.? Sustainable Development benefits and safeguards
11.? Contribute to net zero transition
Regulatory Compliance Market: Companies and governments who are required by law to account for their greenhouse gas emissions use the compliance market. Obligatory national, regional, or ?? global carbon reduction programs regulate it.
VCM: In the?VCM, private parties operate in the voluntary buy?and trade?of carbon credits, which are certified removals or reductions of greenhouse gases (GHGs) from the environment.
Carbon Market Price and Demand: With a compound annual growth rate (CAGR) of 55.5% from 2023 to 2032, the global market for carbon credits is expected to reach $143.5 billion by 2032. Depending on market conditions, the yearly demand for carbon offsets is projected to range from 2.5 billion to 5.9 billion tons by 2050. As the milestone years for net-zero targets approach, the price of carbon offsets may peak at about $238 per ton by 2050, a considerable increase from approximately $20 per ton in 2030.
Trading Dynamics: The demand for high-integrity offsets and trust in the quality of credits will influence the dynamics of carbon credit trading in the future. Encourage an enormous rise in carbon trading, possibly up to a hundred times the existing rate. India's Nationally Determined Contributions (NDCs) are an ambitious initiative to cut the country's GHG emissions intensity by 45% by 2030.
?? Future Prospects: The voluntary sector of India's carbon market is predicted to increase from $2 billion to $200 billion by 2030.
??Call to Action: A positive trajectory is shown by the government's proactive approach to market structure change and encouraging international engagement.
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