1. Emission Targets for Polluting Industries:
- For the first time, the Budget speech has signaled that industries such as iron, steel, and aluminium will have to conform to emission targets rather than just energy efficiency targets.
- A roadmap will be formulated to transition these industries from energy efficiency targets to emission targets.
2. Regulatory Changes:
- The Budget proposes appropriate regulations for transitioning from the current ‘Perform, Achieve, and Trade’ (PAT) scheme to the ‘Indian Carbon Market’ mode.
- This transition will involve establishing emission targets and creating a framework for emission trading.
3. Support for Micro and Small Industries:
- An investment-grade energy audit of traditional micro and small industries in 60 clusters (including brass and ceramic) will be facilitated.
- Financial support will be provided for shifting these industries to cleaner energy sources and implementing energy efficiency measures.
- The scheme will be expanded to another 100 clusters in the next phase.
4. India Carbon Market:
- The proposed India Carbon Market aims to create a platform for trading carbon credits, which are generated by preventing carbon emissions.
- Industries will need to curb annual emissions, and those that exceed targets can buy carbon credits from those who are below their targets.
- The market is intended to create financial incentives for reducing emissions.
1. Perform, Achieve, and Trade (PAT) Scheme:
- Operational since 2015, PAT incentivizes industries to achieve energy efficiency targets.
- Industries are awarded energy savings certificates for exceeding targets, which can be traded.
2. Emission Targets:
- New regulations will set specific limits on emissions for industries.
- Industries will need to comply with these limits to avoid penalties and will be able to trade carbon credits within the Indian Carbon Market.
3. Indian Carbon Market:
- A trading platform where carbon credits can be bought and sold.
- Carbon credits are generated by industries that prevent emissions and can be purchased by industries that exceed their emission targets.
4. Energy Audit:
- An assessment process that evaluates the energy consumption of industries.
- Identifies opportunities for energy savings and efficiency improvements.
1. Environmental Impact:
- Transitioning to emission targets will help reduce the carbon footprint of polluting industries.
- Supports India's commitment to international climate agreements and targets.
2. Economic Incentives:
- The Indian Carbon Market creates financial incentives for industries to reduce emissions.
- Encourages investment in clean technologies and energy efficiency measures.
3. Support for Small Industries:
- Financial and regulatory support for micro and small industries helps them transition to cleaner energy and improve energy efficiency.
- Ensures that environmental regulations do not disproportionately impact small businesses.
4. Regulatory Framework:
- Establishing clear emission targets and a trading platform will provide a structured approach to managing industrial emissions.
- Helps industries plan and invest in long-term sustainability measures.
The Union Budget 2024 introduces significant changes aimed at reducing industrial emissions by transitioning from energy efficiency targets to emission targets. The establishment of the Indian Carbon Market and support for micro and small industries underscore the government’s commitment to environmental sustainability and economic growth. These measures are expected to have a positive impact on India's environmental footprint while promoting clean energy investments and technological advancements.
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