Global Carbon Market (GCM)
Objective
India, whose yearly emissions follow only two nations, China and
the US, is a prominent player in global climate politics and plays
a crucial role in meeting the goals of the Paris Agreement. Carbon
markets have played a significant role in India’s climate policy
since the Kyoto Protocol. GIZ India has been implementing the
Indian chapter of the global project called ‘BMU CDM JI Initiative’
since 2008 with a focus on developing Clean Development Mechanism
(CDM) projects and building capacities. Considering the evolving
nature of the carbon markets, the project was rechristened as
‘Global Carbon Market’ in 2013 and expanded its scope to climate
finance, voluntary carbon markets and carbon pricing aspects.
Several stakeholders are supportive of market-based approaches.
However, several opposition stances around the issue of carbon
markets has led to contested negotiating positions which makes
consensus decision-making difficult in this regard. Hence, it is
critical to arrive at technical grounds for discussions rather than
opinions which requires evidence-based policy making.
This project provides evidence-based policy advisory through
comprehensive, demand driven and sector specific studies and
reports. Experiences suggest that capacity building is critical in
both public and private sector. MoEFCC’s recent interest in
consolidating stakeholder voices on Article 6 of the Paris
Agreement (dedicated to markets) is a welcome move in the direction
of formulating India’s position. The Global Carbon Market (GCM)
project has been supporting the Indian government in this endeavour
by jointly organising such consultations. The project also aims to
facilitate national and international knowledge exchange and
institutional networks resulting in
more visible and active role of India in international climate
negotiations and other fora.
The overarching objective of the project is to enhance the
capacities of public and private sector decision makers to use
existing and new market-based means and approaches to implement
climate action plans or the Nationally Determined Contributions
(NDC).
The project describes three work packages as explained
below:
Engagement with public sector on providing capacity development
support on carbon market and climate finance instruments.
Engagement with the private sector and other stakeholders (Think
Tanks, NGO, Science) for actively participating in the development
and implementation of carbon market and climate finance
instruments.
Recognition of project partners as active carbon market players
in various fora.
ActivitiesWork package 1: Engagement with Public sector
Engaging with SCOPE (Standing Conference of Public Sector
Undertaking) on capacity needs assessment and building capacities
of PSUs on climate change mitigation, carbon markets and climate
finance.
Developing a GHG footprint app named the ‘Green Good Deeds’ for
creating awareness amongst general public.
Facilitating conversations between Indian and German
Negotiators.
Ongoing support to the National CDM Authority (NCDMA) for
tracking CDM projects and its lifecycle.
Ongoing studies for government officials to support
decision-making. For example, Linking Carbon credits with E-waste
and Extended Producer Responsibility (EPR) credits; Green Credits
programme; Analysis of CDM and VCM portfolio).
Work Package 2: Engagement with Private sector and other
stakeholders for actively participating in the development and
implementation of carbon market instruments
Collaborating with Entrepreneurship Development and Innovation
Institute (EDII) in Tamil Nadu, Gujarat, IIT-Madras, Maharashtra
State Innovation Society on capacity building of start-ups on
Voluntary Carbon Markets (VCM).
Supporting Municipal Solid Waste (MSW) management start-ups in
developing a Gold Standard certified Programme of Activity
(PoA).
Supported the development of CDM PoA on “Alternate Wet and
Drying of Rice Cultivation in India” – received Host Country
Approval Letter from MoEFCC.
Collaborating with CII Foundation on developing a VCM project on
reducing stubble burning which can significantly reduce air
pollution.
Most Corporates in the country are working on Afforestation
Activities as part of their CSR initiative or otherwise. The
project is providing a platform to collectively pool this into a
VCM project, generating offsets that could be used by the
corporates for offsetting.
Work Package 3: Recognition of Project partners as active carbon
market players at various fora (national and international)
The project facilitated national workshops on Article 6 of the
Paris Agreement.
MoEFCC jointly organised the annual India Climate Policy and
Business Conclave (ICPBC) with BMU, Federation of Indian Chambers
of Commerce and Industry (FICCI), World Bank Group (WBG) with
support from GIZ.
Achievements
The project resulted in development and registration of a
Verified Carbon Standard (VCS) REDD+ methodology – first from South
Asia.
Supported development of online tracking management information
system for CDM projects from India. It also supports tracking of
the lifecycle of these projects.
As a result of engagement on Article 6 of the Paris Agreement,
MoEFCC developed two working groups on providing inputs on market
negotiations. The first group is led by FICCI while the other is
led by The Energy and Resources Institute (TERI).
The project anticipates that the Indian Designated Nodal Agency
(DNA) will expand its advisory services on carbon market
instruments under Article 6 of the Paris Agreement by supporting at
least one technical concept developed on carbon market instrument
and one on climate finance – for example the Green Credits
Programme under this project.
Partner states Pan India
Commissioned by German Federal Ministry for the Environment,
Nature Conservation and Nuclear Safety (BMU)
Lead Executing Agency Ministry of Environment, Forest and
Climate Change (MoEFCC)
Lead Implementing Agency
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
GmbH
Budget Euro 1 million
Duration July 2018 – June 2021
Published by:Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH
Registered officesBonn and Eschborn, Germany
Global Carbon MarketA2/18, Safdarjung Enclave, New Delhi-110
029, IndiaT +91 49495353F +91 49495391E:
[email protected]/india
Responsible: Dr Ashish Chaturvedi, Director, Climate Change As
at February 2020
GIZ is responsible for the content of this publication.
On behalf of the German Federal Ministry for the Environment,
Nature Conservation and Nuclear Safety (BMU).
Photo Credits: GIZ/GCM
