Learning Academy

Analyses how a carbon price will actually form in India's intensity-based CCTS. Key insight: because allocation scales with output, growth creates both credit supply (from efficient firms) and demand (from laggards) at once, making benchmark calibration the central lever for scarcity. Also dissects why excluding the power sector removes the largest emitter and the fuel-switching channel, and why companion policies (PAT, RCO, PLI, green hydrogen) can depress prices without baseline revision.

Argues India should build a Price or Supply Adjustment Mechanism into the CCTS from the start, rather than waiting as the EU ETS did (14 years of €3-7 prices before the Market Stability Reserve). Proposes three tools that fit India's institutions: consignment auctions, vintage-based credit classification, and a price corridor. The throughline: markets that delay stability mechanisms pay for it later with disruptive, politically costly reforms.

[commentary coming soon]

[commentary coming soon]

[commentary coming soon]

[commentary coming soon]