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India is finalizing carbon dioxide emissions intensity targets for specific industries ahead of the 29th Conference of Parties (COP29) in Baku, Azerbaijan.
The targets will facilitate the establishment of a compliance carbon market, where companies must meet emissions limits or buy credits from those who exceed their targets.
One credit is earned for every tonne of CO2 saved beyond the set target, with market-driven prices for these credits.
The National Steering Committee for Indian Carbon Market (NSC-ICM) will oversee the carbon market's implementation.
India plans to launch this compliance market in the financial year 2025-26, following regulatory requirements.
The focus will be on "hard to abate" sectors such as aluminium, cement, and petrochemicals, which are challenging to decarbonize due to high costs.
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