Buildings and cooling systems represent a growing source of direct and indirect greenhouse gas emissions in India. The sector accounts for nearly one third of annual electricity use nationally and has an equally large footprint in embodied greenhouse gas (GHG) and carbon emission. Emissions from building sector are anticipated to increase because of higher energy demands, primarily from cooling and energy intensive equipment such as that used in data centres and IT parks. Cooling energy demand within the building sector is growing because of intensifying temperatures resulting from climate change and will have a significant impact in managing greenhouse gas and carbon emissions from the sector in the future.
Inclusion of buildings in CCTS will improve India’s progress towards its net zero emissions and sustainable development goals. As the Carbon Credit Trading Scheme (CCTS) is operationalised, it presents opportunities for decarbonization of the building sector. India has several relevant frameworks emphasizing emissions mitigation including regulations such as the Energy Conservation and Sustainability Building Code, India Cooling Action Plan, Perform Achieve and Trade PAT scheme (for hospitality) and market-oriented mechanisms such as the multiple green building rating systems (GRIHA, IGBC, LEED etc.). ECSBC targets net zero energy emissions; in addition, rating systems are also introducing net zero carbon certification systems to accelerate emissions abatement. Existing instruments of ECSBC and market-led carbon ratings are potential enablers for integrating buildings and cooling systems in CCTS.
Addressing emissions abatement through CCTS in buildings also requires managing challenges of accounting both embodied and operational emissions, avoiding double counting in embodied emissions accruing from sectors already included in CCTS (cement, steel, aluminium etc.), tracking the multiple supply chains merging in construction and disaggregated nature (in terms of ownership, project size etc.) in building and cooling sector.
International experience such as the Tokyo Cap and Trade Program, the Korea ETS and the EU ETS shows that buildings can be integrated into emissions trading either directly or indirectly through energy and industry pathways. Pilots such as the Shenzhen district cooling crediting programme and cooling related work in Viet Nam illustrate additional options. Global guidance such as the Science Based Targets Initiative Buildings Criteria supports a whole building approach that covers operational emissions embodied carbon and refrigerant related emissions. The Climate Bonds Initiative Buildings Criteria also provide a taxonomy and performance thresholds that can support India’s work.
