Workshop: Modelling insights and design choices for a credible Indian carbon market

The workshop held in New Delhi, co-organised by the Institute for Energy Economics and Financial Analysis (IEEFA), the Indian Institute of Technology Roorkee (IIT Roorkee), and the Environmental Defense Fund (EDF), brought together policymakers, researchers, technical experts, and representatives from India’s obligated sectors to examine modelling insights and design choices for a credible Carbon Credit Trading Scheme (CCTS).

The half-day workshop was part of an 18-month joint project between IEEFA, IIT Roorkee, and EDF, launched in October 2024. The project includes three policy research reports and the development of a preliminary simulation model to inform carbon market participants and key stakeholders such as the Bureau of Energy Efficiency (BEE).

Session 1 of the workshop was titled ‘Modelling to inform the Indian carbon market’, covering the Carbon Credit Trading Scheme (CCTS) modelling framework, sectoral abatement potential, marginal abatement cost (MAC) curve construction, compliance scenario analysis, and indicative carbon price signals. Session 2, ‘Market stability, design choices, and the road ahead’, considered price stability mechanisms and future design pathways for the CCTS.