Carbon Pricing

Identify, develop and communicate carbon pricing policy with the aim of reducing greenhouse gas emissions in pursuance of national climate change mitigation goals, and aligning with the climate pledge in the Paris Agreement, 2015.



Competency Area

Climate Change


Understands the relevance of adopting carbon pricing

Recognises the three categories of explicit carbon pricing: emissions trading systems (ETS), carbon tax and a hybrid of both elements

Understands carbon prices as a tool to identify potential climate risks and revenue opportunities

Identifies national circumstances relevant to communicating carbon pricing (eg: political stability, national security, etc.)

Lists the key drivers that can catalyse Indian industry’s green transition (renewable energy, technology, energy security and environmental market creation)

Develops policy instruments for carbon pricing

Categorises the advantages and disadvantages of each category on emission reduction outcome

Develops policy instruments to put a price on the social costs of emissions(such as Carbon Pricing Dashboard, Partnership for Market Readiness (PMR), Carbon Tax Guide: A Handbook for Policy Makers, etc.)

Gathers information needed to prepare a communication design for carbon pricing (eg: audience, message, communicators, integration with carbon price policy)

Interprets the Indian schemes and mechanisms aimed to put an implicit price on carbon (Perform, Achieve and Trade (PAT) Scheme, Coal Cess, Renewable Purchase Obligations (RPO) and Renewable Energy Certificates (REC), etc.)

Formulates carbon pricing policies

Prioritises trading schemes to a global carbon market to stabilize prices and create more options to reduce carbon emissions

Formulates the carbon pricing policy to adequately price carbon and avoid leakages to achieve GHG emissions reductions.

Designing a communication campaign considering budget, publicity mode, social message, narratives, etc.

Evaluates the key challenges impacting the effective implementation of carbon price policies (eg: political economy considerations, public oppositions, revenue recycling, economic competitiveness, etc.)

Promotes compliance to global standards for national carbon pricing strategies

Cultivates global values to mobilize the financial investments to clean technology, fueling new, low-carbon drivers of economic growth

Administers the potential impact of climate change policies on country’s investment portfolios (corporate, government and financial institutions), to reallocate capital toward low-carbon or climate-resilient activities

Implements the carbon pricing communication strategy to build support and manage risk (within the government, businesses, and the general public) to ensure successful implementation of policy

Compares existing and emerging carbon pricing initiatives around the world and the observed trends in their development and implementation