India plans to launch a domestic energy-efficiency trading scheme as part of its efforts to reduce emissions of greenhouse gases and combat climate change.

Jairam Ramesh, the environment minister, said the ruling Congress party would make amendments to the Energy Conservation Act in the coming months to create a financial mechanism that would help put India on a par with some of the world’s most energy efficient economies. He said India was already as energy efficient as Germany, and had ambitions to match Japan.