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EKI Energy Applauds US Government's New Principles for High-Integrity Voluntary Carbon Markets

EKI Energy Services Ltd. welcomes and applauds the Biden-Harris Administration's announcement of new principles for high-integrity voluntary carbon markets.

June 04, 2024. By News Bureau

EKI Energy Services Ltd. welcomes and applauds the Biden-Harris Administration's announcement of new principles for high-integrity voluntary carbon markets. The release of these principles, accompanied by a Joint Statement of Policy, marks a significant step towards advancing credible and ambitious climate action.

The principles, endorsed by top officials underscore the US government's commitment to fostering responsible participation in voluntary carbon markets. By setting clear incentives and guardrails, these principles aim to ensure that carbon markets drive meaningful climate action while promoting economic opportunity.

As a company dedicated to promoting sustainability and combating climate change, EKI recognizes the importance of high-integrity carbon markets in accelerating decarbonization efforts. EKI believes that these principles will help strengthen market integrity, restore confidence among stakeholders and unlock the full potential of voluntary carbon markets to drive climate ambition.

It's worth noting that the Indian government also recognizes the urgent need to combat climate change and has taken proactive measures to mitigate its impacts. As early as June 2022, the Energy Conservation (Amendment) Act was enacted, providing regulators with the authority to develop regulations and policies for India's national emission trading system. In 2023, India introduced the Carbon Credit Trading Scheme (CCTS), which encompasses both compliance and voluntary sectors.

In a further progressive move, the government amended the CCTS in June 2023 to include the Offset Market and allow non-obligated entities to participate, opening new opportunities for decarbonization projects within the national carbon market. While specific sectoral scopes, standards and methodologies for accepting Voluntary Carbon Market (VCM) credits are yet to be defined, India's progress in this sector is commendable.

Manish Dabkara, Chairman & MD of EKI Energy Services Ltd. (EKI), said, "We commend the Biden-Harris Administration for taking proactive steps to advance high-integrity voluntary carbon markets. These principles align with our commitment to transparency, accountability and environmental stewardship. By establishing robust standards and ensuring the credibility of carbon credits, we can mobilize private finance at scale for projects that reduce and remove greenhouse gas emissions."

"EKI remains committed to supporting the responsible development of voluntary carbon markets and looks forward to collaborating with stakeholders to achieve our shared climate goals", he added. "Together, we can address the urgent challenge of climate change and build a more sustainable future for generations to come."

Naveen Sharma, Director - Global Carbon Sales and Origination, EKI Energy Services said, "We warmly welcome the Biden-Harris Administration's commitment to bolstering the integrity of voluntary carbon markets. These new principles provide a solid framework for fostering transparency and accountability in carbon credit trading, which is essential for driving meaningful climate action."

The Voluntary Carbon Markets (VCM) have the potential to drive significant progress in combating climate change, yet they face challenges in ensuring the integrity and credibility of carbon credits. Recent observations have revealed discrepancies in the reliability of crediting methodologies, leading to concerns about transparency and accountability in the market. The new Principles will effectively tackle these challenges while also ensuring the high integrity of the Voluntary Carbon Market. These principles aim to establish robust standards for carbon credit supply and demand, improve market functioning and ensure fair treatment of all participants. By prioritizing measurable emissions reductions, promoting transparency and fostering market integrity, these principles will support the responsible development of VCMs and help drive ambitious climate action.

A Morgan Stanley Research estimates the Voluntary Carbon Market to grow to about USD 100 billion by 2030 and around USD 250 billion by 2050. The release of new principles by the Biden-Harris Administration will further bolster this projected growth trajectory, providing a significant boost to investor confidence and catalyzing greater participation in carbon credit trading.

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