Renewable Energy Certificates(REC) worth 9,000 crores have been sold since a decade ago, a report shows that there are very few voluntary takers of renewable energy certificates.
Renewable Energy Certificates (REC) are financial instruments that are used to promote renewable energy and facilitate compliance with renewable purchase obligations(RPO). India has two power exchanges, IEX (Indian Energy Exchange) and PIXL (Power Exchange India Limited). In 2020, only 5.3 million RECs were sold out of the expected 72.5 million. The RECs were bought by 27 distribution companies of which all failed to meet their renewable purchase obligations.
The Intellecap report says that carbon markets have been very effective in curbing carbon emissions.
“Although carbon trading is underway among several corporations in India it is largely on a voluntary basis. Carbon markets will be critical in supporting India's NDCs and commitments made at CoP26 which include achieving the target of net zero emissions by 2070 and reducing its total projected carbon emissions by one billion tons between now and 2030,” said Santosh Singh, Managing Director for Clean Energy, Climate Change & Agriculture at Intellecap.