CBG Industry Seeks Carbon Credit Trading Mechanism Amid Fertilizer Concerns

Compressed Biogas (CBG) operators met with Jal Shakti Minister CR Paatil to discuss issues like excessive use of chemical fertilizers and the need for a carbon credit trading mechanism. They emphasized promoting bio-fertilizers and requested more educational programs for farmers. The meeting aimed to review the GOBARdhan Initiative's progress and strengthen government support for the sector.

Compressed Biogas (CBG) operators met with Jal Shakti Minister CR Paatil on Thursday to discuss concerns about the excessive use of chemical fertilizers and the absence of a carbon credit trading mechanism in the sector.

According to a statement from the Jal Shakti ministry, the operators stressed the promotion of bio-fertilizers to restore soil health and called for more farmer educational programs.

They also urged the government to establish mechanisms for carbon credit trading, which could significantly enhance the sector's economic viability and support India's net-zero vision.

The Union Minister led a dialogue with CBG producers and key stakeholders to review the progress of the GOBARdhan Initiative, which emphasizes converting organic waste into valuable resources.

The event highlighted the government's commitment to transforming organic waste into CBG and organic manure, vital for achieving India's long-term environmental objectives.

The gathering included representatives from various ministries, departments, and leading sector organizations, aiming to foster collaboration and address the challenges faced by CBG producers.

Paatil affirmed the government's dedication to sustainable waste management solutions, emphasizing the dual benefits of environmental protection and economic development.

The CBG industry noted the Union Budget 2023-24's announcement to establish 500 new waste-to-wealth plants as a significant boost for the GOBARdhan initiative.

Currently, 113 CBG plants are operational, with 667 in various stages of development and 171 under construction, a significant increase from the 19 functional plants in 2020.

Various government policies, such as Market Development Assistance and financial support for pipeline infrastructure and biomass aggregation machinery, were acknowledged for their role in promoting the sector.

The SATAT scheme and excise duty exemptions further support the industry's growth, while the Ministry of New and Renewable Energy offers financial assistance for BioCNG projects.

The Department of Agriculture and Farmers Welfare has standardized bio-slurry in the Fertilizer Control Order, and the Agri-Infra Fund provides favorable loan conditions for CBG plant establishment.

Paatil assured stakeholders of ongoing government support, predicting that the CBG sector will soon become a pivotal industry for the economy.

(With inputs from agencies.)