NDTV World Summit: Vibrant Market For Carbon Credits Soon?

India will open up the possibility of monetizing carbon credits, said e-mobility expert Mustafa Wajid, hinting at a vibrant trade of carbon credits between different sectors in the near future. Speaking on Day 2 of the NDTV World Summit, the co-founder of e-mobility firm BILLIONe said the government's vision is to create a carbon market just like the stock market.

His remarks came at a panel discussion on 'Aligning Profit With Purpose', also attended by Gagandeep Sethi, Senior Vice-President, Integrated Operations and Sustainability and Responsibility, Pernod Ricard India, and Ajay Pillai, Partner - Sustainability and Climate Change, Deloitte.

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"Carbon credits will come. Good organisations that can adapt their processes will generate carbon credits. And there will always be a sector generating carbon debits, for example, the cement and steel industries. There will be a very vibrant market with people wanting to buy carbon credits," said Mr Wajid, citing the example of Tesla which sold carbon credits to its rivals.

Mr Wajid said policies are being drafted for the trade of carbon credits, but its implementation won't be without challenges. "The process to create a carbon market is on. Policies are being drafted and we are very optimistic to see it kicking off in 2026. What we did with stock markets, we can do with the carbon markets," he said.

"De-carbonisation and sustainability can be monetized in the future, and can add to a company's bottomlines," he added.

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The three industry experts also brainstormed over how to overcome sustainability-related challenges.

Mr Pillai listed the challenges to the implementation of ESG, or Environmental, Social, and Governance factors in the production process across sectors. These include quality and availability of data, lack of awareness and expertise, and lack of intent. "We want to imbibe sustainability as part of our business model," he added.

Mr Sethi said he has found, in his personal experience, that the first few steps towards sustainability is profit neutral.

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"Steps like a sustainable switch of fuels hardly come with a cost. It's only profit. But to have ESG at the design stage itself and re-engineering is where the largest investment will come in. We need policy support and regulatory support to make the correct decisions, but there is a lot to be done till that stage," he added.

Mr Pillai echoed similar views: making sustainability part of the overall business, like water conservation or handling waste. "Initially, there is a capital investment, but if you are looking at your business for a longer term, sustainability is needed. The faster you adapt it, the better you are ready for future," he added.