Market Readiness Programme India

Start & End Date: 2017-Ongoing

Country/Countries: India

Multilateral Institution(s) Involved: World Bank

India is one of the largest emerging economies with a population of over one billion. Currently, it is grappling with several economic and developmental challenges. Despite these challenges, India has consistently shown leadership in global efforts to limit climate change. While absolute GHG emissions show a rising trend, India’s per capita emissions continue to be one of the lowest in the world. India proposed an ambitious target of reducing its GHG emission intensity by 33-35% by 2030 relative to 2005 in its Nationally Determined Contributions (NDCs). To achieve this goal, India needs ambitious and aggressive domestic policies that facilitate a shift into low carbon societies but at the same time ensure India’s developmental priorities are met.

The PMR grant is sought to assess the barriers for effective implementation of Perform-Achieve-Trade (PAT) and Renewable Energy Certificate (REC), especially to increase their market liquidity and to provide recommendations to improve their design elements, and enhance preparedness for scaling-up. The most important objective of this exercise is to offer key lessons for the development of the new Market Based Mechanism (MBM) pilot which is planned in BB4. Informed decision-making is important to identify, design and implement Market Based Mechanisms (MBMs). BB2 seeks to undertake analytical work to guide and support the process of selecting and prioritizing market based policy instruments.

India has not finalized an MRP. It is expected that PMR support will build and integrated GHG data management system and develop an off-grid Renewable Energy Certificate (REC) program; and expand sectoral coverage of the Perform Achieve and Trade (PAT) system.