Context:
With India moving toward a low-carbon development pathway, the government has introduced the Carbon Credit Trading Scheme (CCTS) to incentivize emission reduction. However, as the carbon market grows, concerns are rising regarding land rights, community consent, and exploitation risks, especially among farmers, tribal communities, and marginalized groups.
Key Highlights / Details
Carbon Credits and Decoupling Growth from Emissions
- Developing countries like India cannot adopt “degrowth” due to ongoing challenges of poverty and hunger.
- Solution lies in green growth—using clean technology, renewable energy, sustainable agriculture.
- Carbon credits represent certified reductions of greenhouse gas emissions (in CO₂ equivalent).
- Generated through:
- Renewable energy (solar/wind projects),
- Reforestation/afforestation
- Agroforestry and biochar
- Low-emission farming practices
India’s Carbon Credit Trading Scheme (CCTS)
- Establishes emission intensity benchmarks for industries.
- Includes voluntary carbon offsetting.
- Features national registry + trading platform.
- Draft methodologies released for:
- Biomass
- Compressed Biogas (CBG)
- Low-emission rice cultivation
Risks of Exploitation in Carbon Markets
- Case studies warn of top-down carbon projects harming local communities.
- Northern Kenya Rangelands Project: Suspended due to lack of Free, Prior and Informed Consent (FPIC) and land rights violations.
- Lake Turkana Wind Project: Displaced pastoral communities from grazing lands.
Risks for India
- Carbon projects may encroach on:
- Village commons
- Forest fringe lands
- Pastoral routes
- Tribal communities and smallholders face exclusion due to:
- Power imbalances
- Opaque developer contracts
- Lack of benefit-sharing transparency
- Marginalised caste farmers already excluded from some agricultural carbon projects.
Challenges in Current Framework
| Issue | Risk |
| Weak land rights safeguards | Land dispossession |
| Lack of FPIC | Forced project participation |
| Opaque benefit-sharing | Exploitation of communities |
| Compliance focus only | Ignores social justice |
| No grievance redress | No protection for farmers/tribals |
Way Forward
To ensure climate justice in carbon markets, India must:
✅ Recognize community land rights and commons
✅ Ensure Free, Prior and Informed Consent (FPIC)
✅ Mandate benefit-sharing agreements
✅ Ensure transparency in contracts and pricing
✅ Set up community grievance redress system
✅ Promote community-led carbon projects (Panchayat participation)
✅ Avoid overregulation, adopt light but fair governance
Relevant Prelims Points
- Carbon Credit Trading Scheme (CCTS) – Launched under the Energy Conservation Act, 2001 (amended 2022).
- Carbon Markets – Defined under Article 6 of the Paris Agreement.
- REDD+ – UN programme to reduce emissions from deforestation.
- FPIC – Principle in UNDRIP (UN Declaration on Rights of Indigenous Peoples).
- CIMMYT – International agri-research organization.
Relevant Mains Points
- Integration of climate action with social justice.
- Preventing “carbon colonialism” in India.
- Role of inclusive climate markets in rural development.
- Need for ethical carbon governance.