New Haven, Connecticut: India plans to hold the first trading session of Indian Carbon Market (ICM) later this year, marking the culmination of a process that has been underway since 2023. The launch is a major milestone, introducing a powerful new policy instrument to reduce carbon emissions intensity of the manufacturing sector.
Market-based regulation is the best way to meet environmental goals while promoting economic growth. We had advised Gujarat on setting up a market for local air pollution. The new market cut pollution at sharply lower economic costs than existing policy. The same market principles can work for GHGs.
