India weighs joining global carbon market coalition
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Nearly 500 Indian companies submitted their first compliance reports under India’s national Carbon Credit Trading Scheme (CCTS), and now policymakers are considering whether to join the Open Coalition on Compliance Carbon Markets (OCCCM).
In May, the European Union, China, and Brazil created the OCCCM to coordinate communication between countries with carbon markets. Germany, New Zealand, Canada, France, Norway, Singapore, Türkiye and the United Kingdom have since become members.
India currently remains outside the coalition, but experts argue that participation is now crucial as the country’s carbon market becomes operational. Joining the OCCCM would allow India to influence the development of international carbon pricing rules and potentially earn revenue by linking its market to those with stricter emissions targets. The coalition focuses on sharing knowledge about carbon pricing, monitoring emissions, and verifying carbon accounting methods.
Experts also suggest that joining could help India prepare for potential “climate clubs” and carbon border adjustment mechanisms, policies that could impact international trade based on carbon emissions. The authors note that the OCCCM does not enforce mitigation targets, but being present in discussions allows members to shape outcomes. Brazil’s membership and the inclusion of other developing nations could offer India comfort.
With climate negotiations facing obstacles and carbon pricing gaining prominence, country-led coalitions are likely to become more important in achieving the goals of the Paris Agreement. Vaibhav Chaturvedi of the Council on Energy, Environment and Water and Catherine Wolfram of MIT argue that India should join the OCCCM to protect its interests and engage with evolving global policies.
