India, the world’s third-largest emitter of greenhouse gases, will soon start penalizing polluting facilities that fail to contain their carbon emissions in a move with potential global significance.
Home to more than 1.4 billion people, India is slated to launch a carbon market in 2026 to cut polluters’ carbon intensity, or emissions per unit of production.
By limiting carbon intensity, India will allow each facility’s total emissions to rise as production increases in the rapidly growing nation. Polluters that exceed carbon-intensity limits will face financial penalties.
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Other carbon markets, such as those in California and Washington state, require polluters to cut total emissions regardless of production or pay penalties.
