IICA and CMAI ink pact to strengthen decarbonisation efforts

In a major development for India’s carbon markets and decarbonisation initiatives, the Indian Institute of Corporate Affairs (IICA) and the Carbon Market Association of India (CMAI) signed a Memorandum of Understanding (MoU) in New Delhi on February 4. 

What are carbon markets?

Carbon markets are carbon pricing mechanisms enabling governments and non-state actors to trade greenhouse gas emission credits. The aim is to achieve climate targets and implement climate actions cost effectively.

There are two types of carbon markets: Compliance and voluntary. 

In compliance markets such as national or regional emissions trading schemes participants act in response to an obligation established by a regulatory body. 

In voluntary carbon markets, participants are under no formal obligation to achieve a specific target. Instead, non-state actors such as companies, cities or regions seek to voluntarily offset their emissions, for example, to achieve mitigation targets such as climate neutral, net zero emissions.

Indian Institute of Corporate Affairs (IICA): 

IICA was set up by the Ministry of Corporate Affairs as a society on September 12, 2008 under the Societies Registration Act, 1860. IICA is an autonomous institute which works under the aegis of the MCA to deliver opportunities for research, education, and advocacy. It is also a think tank that curates a repository of data and knowledge for policymakers, regulators as well as other stakeholders working in the domain of corporate affairs. 

Carbon Market Association of India (CMAI): 

It is a leading not-for-profit industry group driving India’s transition to a net-zero future by decarbonising hard-to-abate sectors. Collaborating with key ministries and NITI Aayog, CMAI provides policy advocacy, capacity building, and knowledge support.

The MoU will lead to a series of initiatives, including:

• Training Programmes: Creating and offering courses on carbon markets, low-carbon industrial solutions, and sustainable finance.

• Joint Research: Conducting studies and publishing findings on decarbonisation strategies and carbon trading.

• Workshops and Conferences: Hosting events for stakeholders, policymakers, and academics to discuss carbon market advancements.

• Policy Advocacy: Supporting the creation of regulatory frameworks that promote India’s net-zero goals.

(The author is a trainer for Civil Services aspirants.)