popular articles

India on the road to decarbonization

India, faced with rising carbon emissions, is developing a new hydrogen and carbon market policy for 2023.

Please share:

India, faced with rising carbon emissions, is developing a new hydrogen and carbon market policy for 2023.

Decarbonization ambitions

In India, RK Singh, Minister of Power and New and Renewable Energy, says:

“This is a major step for our energy transition. This bill contains provisions for housing (decarbonization), the carbon market, and mandating the consumption of non-fossil sources.”

In introducing the bill to provide a legal framework for hydrogen, the Minister also addresses the decarbonization aspect of the country. Experts predict that emissions from coal combustion will increase until 2044.

Thus, iron and steel, cement, refineries and fertilizer producers are among the sectors that will be allocated emission allowances. They will be required to trade carbon credits on Indian power exchanges, according to government officials. New Delhi, however, was committed to an unambitious scenario to reach net zero by 2070.

In addition to the planned carbon market, India is developing a voluntary carbon market (VCM). It provides for the participation of a defined set of sectors trading credits in an offset mechanism. Indeed, ESG and climate factors are becoming crucial for companies committed to carbon neutrality.

On the other hand, the price of credits based on renewable energy in India is estimated at $3.50/mtCO2e in December 2022. India issued about 40 million MCV credits between early 2022 and October, or 20.2% of the global total. Minister of State Singh comments:

“We will use our carbon credits to achieve our own NDCs (nationally determined contribution under the Paris Agreements). Any surplus would be available for sale internationally.”

Renewable energy credits accounted for 95.3% of India’s total VCM credit issuance during the nine-month period. Manish Dabkara, CEO of Eki Energy Services and Chairman of the Carbon Markets Association Of India, states:

“Our association works closely with Indian policy makers and international stakeholders. Our goal is to propel Indian CVD exports to their peak. We further wish to successfully establish the domestic emissions trading system through Article 6 opportunities.”

However, the price of loans in December is down 10% month-on-month.

The second part of the Energy Conservation Act also sets mandatory renewable hydrogen consumption targets. The goal is to stimulate demand for the new fuel. A target of 5 million metric tons of renewable hydrogen production was a goal by 2030.

The development of hydrogen

Activity in the sector in India is expected to intensify next year. Indeed, new projects could double renewable hydrogen capacity. For example, investors like Reliance New Energy and Adani New Industries have been seeking partnerships since 2021.

Reliance New Energy says it will invest $10 billion over the next three years in new fuels. The goal would be to reach 100GW of renewable energy capacity by 2030. Adani New Industries is also looking to invest over $50 billion over the next ten years.

The company hopes to produce 1 million tons per year of renewable hydrogen before 2030. India has 54 renewable or low-carbon hydrogen projects. This represents 1.99 million tons of renewable hydrogen.

In comparison, Australia has 137 renewable hydrogen projects. This represents 9.84 million tons. In India, a Green Hydrogen Mission project proposes $3.69 billion for 2022-2030 to support the production sector.

New Delhi wants to implement hydrogen consumption obligations in certain sectors such as fertilizers or refining. 145.5 billion rupees would be available for an incentive program related to domestic electrolyzer manufacturing. Companies are most interested in learning about the financial support for renewable hydrogen production.

For example, Qatar’s alkaline electrolysis hydrogen (including investments) was valued at $2.59/kg on December 16. This represents an increase of 0.39% month over month. Japanese hydrogen produced by alkaline electrolysis (including CAPEX), amounts to $10.87/kg, a 15% increase month-on-month.

Register free of charge for uninterrupted access.

Publicite

Recently published in

*Thames Water, a major water supplier in the UK, is facing an environmental investigation over growing concerns regarding its waste management and leaks. This situation raises significant financial stakes for the company.*
The Medef and thirteen other European employers' organizations launch an initiative to support the nuclear sector in the EU, in response to increasing competitiveness challenges exacerbated by international politics and global economic tensions.
The Medef and thirteen other European employers' organizations launch an initiative to support the nuclear sector in the EU, in response to increasing competitiveness challenges exacerbated by international politics and global economic tensions.
France will invest €100 billion to modernize its power grid by 2035. However, the impact on consumer bills will be limited, according to the network manager RTE.
France will invest €100 billion to modernize its power grid by 2035. However, the impact on consumer bills will be limited, according to the network manager RTE.
The Watt For Change Foundation and the French Development Agency are joining forces to support three initiatives aimed at improving access to renewable energy in Benin, Mauritania, and Madagascar. A €860,000 three-year partnership dedicated to assisting local associations.
The Watt For Change Foundation and the French Development Agency are joining forces to support three initiatives aimed at improving access to renewable energy in Benin, Mauritania, and Madagascar. A €860,000 three-year partnership dedicated to assisting local associations.
The Tanzanian government plans to invest $12.9 billion to add 2.4 GW to its power grid by 2030. This funding aims to expand electricity access to 75% of the population, with significant participation from the private sector.
A court demands that all funding linked to federal energy and climate laws, previously suspended, be immediately put back into circulation. This decision is based on a federal judgment challenging the legality of a freeze imposed by the American executive.
A court demands that all funding linked to federal energy and climate laws, previously suspended, be immediately put back into circulation. This decision is based on a federal judgment challenging the legality of a freeze imposed by the American executive.
At the World Summit on Artificial Intelligence in Paris, Emmanuel Macron highlighted nuclear energy as a power source for technological infrastructures, countering Donald Trump's plans to massively expand oil drilling in the United States.
At the World Summit on Artificial Intelligence in Paris, Emmanuel Macron highlighted nuclear energy as a power source for technological infrastructures, countering Donald Trump's plans to massively expand oil drilling in the United States.
Canada will need to build energy infrastructure on an unprecedented scale to meet the federal government's goal of eliminating greenhouse gas emissions from the electricity sector by 2050. A major technical and economic challenge marked by delays and significant costs.
Canada will need to build energy infrastructure on an unprecedented scale to meet the federal government's goal of eliminating greenhouse gas emissions from the electricity sector by 2050. A major technical and economic challenge marked by delays and significant costs.
The majority of countries have not submitted their new climate roadmaps to the UN before the February 10 deadline. This delay raises questions about the priorities of major economies amid geopolitical shifts and economic uncertainty.
Joseph Saddi is the new Minister of Energy in Lebanon. He inherits a sector weakened by reliance on imports and failing infrastructure, while international partnerships struggle to restart oil and gas exploration.
Joseph Saddi is the new Minister of Energy in Lebanon. He inherits a sector weakened by reliance on imports and failing infrastructure, while international partnerships struggle to restart oil and gas exploration.
Rosatom announces the development of a plasma rocket engine prototype capable of reducing the journey to Mars to just 30 days. This technological breakthrough could have major strategic implications in the race for space exploration.
Rosatom announces the development of a plasma rocket engine prototype capable of reducing the journey to Mars to just 30 days. This technological breakthrough could have major strategic implications in the race for space exploration.
The Canadian government allocates $43.5 million to strengthen energy policy related to critical minerals in Quebec. This investment aims to support infrastructure and research, consolidating the country's strategic supply chains.
The Canadian government allocates $43.5 million to strengthen energy policy related to critical minerals in Quebec. This investment aims to support infrastructure and research, consolidating the country's strategic supply chains.
Electricity consumption in France increased by 0.7% in 2024, reaching 449.2 terawatt-hours, according to RTE. This slight rise marks a turning point after two years of decline but remains well below pre-2020 levels.
The National Development and Reform Commission (NDRC) has announced a reduction in renewable energy subsidies in China. New projects will now have to sell their electricity at market prices, marking a transition to a more autonomous economic model.
The National Development and Reform Commission (NDRC) has announced a reduction in renewable energy subsidies in China. New projects will now have to sell their electricity at market prices, marking a transition to a more autonomous economic model.
Lithuania, Estonia, and Latvia have finalized their synchronization with the European electricity grid, ending their dependence on Russian infrastructure. This project, funded with €1.6 billion, strengthens the region’s energy security.
Lithuania, Estonia, and Latvia have finalized their synchronization with the European electricity grid, ending their dependence on Russian infrastructure. This project, funded with €1.6 billion, strengthens the region’s energy security.
French electricity exports generated a record €5 billion in 2024, driven by increased volumes despite falling market prices. Italy, Germany, and Belgium are among the main importers.
French electricity exports generated a record €5 billion in 2024, driven by increased volumes despite falling market prices. Italy, Germany, and Belgium are among the main importers.
France’s electricity exports generated €5 billion in 2024, an unprecedented level driven by increased volumes despite declining market prices. Italy, Germany, and Belgium were among the main importers.
Engie announces an exceptional increase of €50 for energy vouchers benefiting eligible customers and doubles its contribution to the Housing Solidarity Fund (FSL). This measure comes as rising electricity taxes impact consumers.
Engie announces an exceptional increase of €50 for energy vouchers benefiting eligible customers and doubles its contribution to the Housing Solidarity Fund (FSL). This measure comes as rising electricity taxes impact consumers.
La Lituanie, la Lettonie et l'Estonie vont couper leurs derniers liens avec le réseau électrique russe. Ce basculement, prévu le 8 février, marque leur intégration complète au réseau européen après des années de préparation et d'investissements.
La Lituanie, la Lettonie et l'Estonie vont couper leurs derniers liens avec le réseau électrique russe. Ce basculement, prévu le 8 février, marque leur intégration complète au réseau européen après des années de préparation et d'investissements.
Indonesia must manage ambitious climate commitments while maintaining energy stability. The Just Energy Transition Partnership (JETP), aimed at mobilizing $20 billion, faces financial obstacles and uncertainties regarding international funding.
Indonesia must manage ambitious climate commitments while maintaining energy stability. The Just Energy Transition Partnership (JETP), aimed at mobilizing $20 billion, faces financial obstacles and uncertainties regarding international funding.
The Vietnamese government is adjusting its timeline for the implementation of its carbon market. Initially planned for 2028, the official launch will now take place in 2029 after a three-year pilot phase. This delay aims to strengthen the regulatory and technical framework.
The European Union launches an emergency consultation with automakers to accelerate the transition to electrification in response to current competitive and regulatory challenges.
The European Union launches an emergency consultation with automakers to accelerate the transition to electrification in response to current competitive and regulatory challenges.
The BloombergNEF 2024 report reveals a historic record of global investments in the low-carbon energy transition, driven by electrified transport, renewable energy, and power grids.
The BloombergNEF 2024 report reveals a historic record of global investments in the low-carbon energy transition, driven by electrified transport, renewable energy, and power grids.
The High Council for Climate (HCC) presents six conditions for the energy transition. The opinion outlines areas to strengthen, particularly regarding budget mobilization and planning for the phase-out of fossil fuels.
The High Council for Climate (HCC) presents six conditions for the energy transition. The opinion outlines areas to strengthen, particularly regarding budget mobilization and planning for the phase-out of fossil fuels.

Advertising