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Indian gas exchange expects trading in green certificates
Indian Gas Exchange, India’s only gas trading platform, expects trading in green gas certificates to start early next year as the mandatory usage of compressed biogas by city gas distribution companies gets triggered next April. The Union government has made it mandatory that the CGD companies must use 1% of their requirement as CBG from financial year 2026 and take it to 5% by fiscal 2029.
“We have proposed to (the) government to create green gas certificates on the lines of renewable energy certificates used by companies to meet their mandatory renewable targets,” Rajesh Mediratta, chief executive officer of IGX, told NDTV Profit in an interview.
Compressed biogas producers can sell it to the local buyers at nominal rate and take CBG certificates for the premium price that can be sold on the exchange to the buyers in need of the certificates, according to Mediratta.
The CGD companies, in locations where there is no access to the CBG, can buy green gas certificates. It will also increase adoption of green gas produced by using agricultural and municipal waste. It will also have a larger shelf life and will save lots of expenses in transmission tariffs for buyers to transport gas over large distances.
“We expect the government to come out with the guidelines detailing the green gas certificates this year that could be implemented from April 2025 when the mandatory CBG usage will get triggered,” Mediratta said.
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