The ongoing Covid-19 pandemic has reinforced that our health, economy, and environment are all connected. As the world emerges into a ‘new normal’, it has become even more critical to cut down emissions. Market-based instruments have an important role in achieving this.
The rules for international cooperation on carbon markets under the Paris Agreement will be finalized at the 26th Conference of Parties of the UNFCCC (COP26), now planned for 2021. But 39 national and 23 sub-national jurisdictions have already implemented or are planning to implement carbon markets to achieve their emission reduction goals.
To support evidence-based design and implementation of a potential carbon market in India, WRI India is working with Indian businesses to simulate a carbon market. This simulation can help businesses identify cost-effective opportunities for emission reduction. It can also help build capacity on carbon markets in India, especially among the micro, small, and medium enterprises (MSMEs) that are part of the value chains of participating companies.
