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The Hindu
3 days ago
- Business
- The Hindu
Assessing India's carbon credit trading scheme targets
The Indian government recently announced greenhouse gas emissions intensity of production targets for entities (such as a steel plant) operating within eight of the nine heavy industrial sectors covered in India's Carbon Credit Trading Scheme's (CCTS) compliance mechanism. The eight sectors are aluminium, cement, paper and pulp, chlor-alkali, iron and steel, textile, petrochemicals and petro refineries. So, is there a way to understand whether these are ambitious targets or not? The first question one needs to ask is this: should we measure ambition at the entity level, or at the sector level or the level of the economy? Our analysis shows that the ambition of India's carbon market targets should be assessed at the aggregate economy-wide level, and not at the level of individual entities or sectors. An economy-wide lens is more important We can look at the Perform, Achieve and Trade (PAT) scheme, which is India's flagship energy efficiency programme for large industries. Under PAT, energy-intensive industries are given targets to reduce their energy use; those which exceed their targets can trade the excess savings with others. We analysed performance data from four sectors under the PAT Cycle I (2012–14) and found a mixed but interesting picture. In some entities, the energy used per unit of production (energy intensity) increased but decreased in others. At the sector level, energy intensity rose in two sectors (paper and chlor alkali) and fell in the other two (aluminium and cement). However, when we combined emissions, output and price data from all four sectors and adjusted for inflation, less energy was used, overall, to produce the same amount of economic output. This shows that even if energy efficiency rises or falls in some entities or sectors, India's overall energy use can still become more efficient. We found similar behaviour across other PAT cycles and sectors. These observations give us a useful insight — India's PAT scheme was able to effectively use market mechanisms to achieve energy intensity reduction at an aggregate level. The decrease in overall energy intensity, even as it rose for some entities, shows that the market mechanism worked; those companies were able to buy energy efficiency certificates instead of undertaking costly in-house changes. But, this in itself does not tell us if the aggregate energy intensity reduction was aggressive or business-as-usual. This does, however, tell us that one should only analyse the aggregate target to infer whether it was aggressive or not. That is, for an externality-driven market, achieving reduction at an aggregate level is far more important than achieving the same at the entity level for 'all' entities. An emissions trading scheme does not bother about individual entities or sectors. It bothers about the economy-level aggregate effect, which is where, ideally, the ambition should be evaluated. But are not entity or sector-level targets important to reduce emissions as well? A research paper by the Council on Energy, Environment and Water (CEEW) shows that entity or sector-level targets only determine financial transfers across entities and sectors, and not the overall emission intensity decline. Comparing the new CCTS targets with historical sector-level performance under the PAT scheme also is not the most meaningful approach to assess ambition. Just because the reduction in emissions in the past has been modest at the industry level, it cannot be the case for the future. Our mitigation actions have to progressively become more ambitious than in the past. Therefore, only a comparison with a future trajectory aligned with a pathway towards India's stated Nationally Determined Contributions (NDC) and a 2070 net-zero future is relevant. While the industry sector-specific CCTS targets cannot be directly compared with the economy-wide NDC target, economy-wide modelling assessments can give useful information in this regard. Emissions intensity to decline According to our recent modelling of a 2030 NDC-aligned emissions reduction scenario for India, the carbon dioxide emissions intensity of India's energy sector (per unit of GDP) is expected to decline at an average annual rate of 3.44% between 2025 and 2030. In comparison, the emissions intensity of value added (EIVA) in India's manufacturing sector is projected to decline by at least 2.53% annually over the same period. This suggests that in the near-term, industry may decarbonise at a slower pace than other sectors — particularly the power sector, which has more low-cost mitigation opportunities. Against this backdrop, the combined average annual EIVA reduction for the eight sectors based on current CCTS targets — indicative of sector-specific commodity price data (a rough proxy for value added), and projected production growth rates — is estimated at 1.68% between 2023-24 and 2026-27. Early signs suggest that the industrial targets under CCTS may not be ambitious enough. While this is not directly comparable since entities covered under the carbon trading scheme represent only a portion of India's overall manufacturing base, it is still the most relevant benchmark available until detailed modelling is done for all sectors. Ultimately, it is the aggregate decline that will determine whether India's effort is truly ambitious. Vaibhav Chaturvedi is Senior Fellow at the Council on Energy, Environment and Water (CEEW). Darshna Singh is Research Analyst at the Council on Energy, Environment and Water (CEEW). The views expressed are personal
Economic Times
6 days ago
- Business
- Economic Times
TCS Q1 Results FY26: Cons PAT up 6% YoY at Rs 12,760 crore; Rs 11 per share dividend declared
Indian IT bellwether Tata Consultancy Services (TCS) on Thursday reported a 6% growth in its Q1FY26 consolidated net profit at Rs 12,760 crore versus Rs 12,040 crore in the year ago period. ADVERTISEMENT The PAT was above Street estimates of Rs 12,205 crore. The revenue from operations rose 1.3% at Rs 63,437 crore versus Rs 62,613 crore in the year ago period. TCS also announced an interim dividend of Rs 11 per share for the financial year 2025-26. The interim dividend will be paid on August 4, 2025 and the record date has been fixed on July reported a revenue decline of 3.1% YoY in Constant Currency terms. ADVERTISEMENT CEO K Krithivasan said that the continued global macro-economic and geo-political uncertainties caused a demand contraction though on the positive side, all the new services grew well. "We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation,' Krithivasan quarter was also marked by a robust Order Book and operational resilience, said the company in its filing to the exchanges. The Q1 Total Contract Value (TCV) stood at $9.4 billion. ADVERTISEMENT The earnings were announced after market hours and TCS shares today ended at Rs 3,395 on the NSE, up by Rs 11.20 or 0.33%.Other key takeaways: Operating Margin stood at 24.5% which was an expansion of 30 bps QoQ Company's net margin stood at 20.1% The net cash from operations at Rs 12,804 crore which was at 100.3% of the Net Income The last twelve month (LTM) IT Services attrition rate stood at 13.8% (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
6 days ago
- Business
- Economic Times
TCS board approves interim dividend of Rs 11 per share. Check record, payment date
Tata Consultancy Services has declared an interim dividend of ₹11 per share. Eligible shareholders as of July 16 will receive the payout on August 4, 2025. The dividend yield stands at 3.73% based on current share price. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads TCS Q1 results The PAT was above Street's estimates of Rs 12,205 crore. The board of directors of IT major Tata Consultancy Services (TCS) on Thursday, announced an interim dividend of Rs 11 per share for its shareholders, who will appear in the company's book as on July 16, which has been fixed as the record date for the purpose.'We would like to inform you that at the Board Meeting held today, the Directors have declared an interim dividend of INR 11 per Equity Share of INR 1 each of the Company,' the company said in its exchange the company has also informed that the said dividend will be paid to the entitled shareholders on August 4, 2025.'The interim dividend shall be paid on Monday, August 4, 2025, to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Wednesday, July 16, 2025,' the company to Trendlyne data, over the past 12 months, TCS has announced an equity dividend of Rs 126 per share. At a share price of Rs 3,379.20, the dividend yield stands at 3.73%.Also read: TCS Q1 Results: Cons PAT up 6% YoY at Rs 12,760 crore; Rs 11 per share dividend declared The Indian IT giant on Thursday reported a 6% growth in its Q1FY26 consolidated net profit, which stood at Rs 12,760 crore compared to Rs 12,040 crore in the same period last the company's revenue was reported at Rs 63,437 crore, which was less than the Street estimates of Rs 64,538 crore. However, it surged 1.3% YoY against Rs 62,613 crore in the year ago Thursday, the shares of TCS ended flat at Rs 3,382.30 on the BSE.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
6 days ago
- Business
- Time of India
TCS board approves interim dividend of Rs 11 per share. Check record, payment date
The board of directors of IT major Tata Consultancy Services (TCS) on Thursday, announced an interim dividend of Rs 11 per share for its shareholders, who will appear in the company's book as on July 16, which has been fixed as the record date for the purpose. 'We would like to inform you that at the Board Meeting held today, the Directors have declared an interim dividend of INR 11 per Equity Share of INR 1 each of the Company,' the company said in its exchange filing. Further, the company has also informed that the said dividend will be paid to the entitled shareholders on August 4, 2025. 'The interim dividend shall be paid on Monday, August 4, 2025, to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Wednesday, July 16, 2025,' the company added. According to Trendlyne data, over the past 12 months, TCS has announced an equity dividend of Rs 126 per share. At a share price of Rs 3,379.20, the dividend yield stands at 3.73%. Also read: TCS Q1 Results: Cons PAT up 6% YoY at Rs 12,760 crore; Rs 11 per share dividend declared TCS Q1 results The Indian IT giant on Thursday reported a 6% growth in its Q1FY26 consolidated net profit, which stood at Rs 12,760 crore compared to Rs 12,040 crore in the same period last year. The PAT was above Street's estimates of Rs 12,205 crore. Additionally, the company's revenue was reported at Rs 63,437 crore, which was less than the Street estimates of Rs 64,538 crore. However, it surged 1.3% YoY against Rs 62,613 crore in the year ago period. On Thursday, the shares of TCS ended flat at Rs 3,382.30 on the BSE.
Time of India
6 days ago
- Business
- Time of India
TCS Q1 Results: Cons PAT up 6% YoY at Rs 12,760 crore; Rs 11 per share dividend declared
Indian IT bellwether Tata Consultancy Services (TCS) on Thursday reported a 6% growth in its Q1FY26 consolidated net profit at Rs 12,760 crore versus Rs 12,040 crore in the year ago period. The PAT was above Street estimates of Rs 12,205 crore. The revenue from operations rose 1.3% at Rs 63,437 crore versus Rs 62,613 crore in the year ago period. TCS also announced an interim dividend of Rs 11 per share for the financial year 2025-26. The interim dividend will be paid on August 4, 2025 and the record date has been fixed on July 16. TCS reported a revenue decline of 3.1% YoY in Constant Currency terms. Live Events More to come...
