The Union Ministry of Power on 30th June 2023 notified the Carbon Credit Trading Scheme, 2023.
Key points
- The scheme aims to develop the domestic carbon market as the country aims at decarbonising the economy and has committed to cut emissions by 45% from the 2005 levels by 2030.
- Carbon credit is the value assigned to the reduction, removal or avoidance of greenhouse gas emissions achieved and is equivalent to one tonne of carbon dioxide equivalent (tCO2e).
- The Centre will constitute a 20-22-member national steering committee (NSC), headed by the power and the environment secretaries, to govern and have a direct oversight of the carbon market.
- The Bureau of Energy Efficiency (BEE) will finalise the procedures for instutionalising the Indian carbon market and formulate the rules and regulations under the guidance of NSC.
- The Central Electricity Regulatory Commission (CERC) will be the regulator for the trading activities. It will register the power exchanges and approve the carbon credit certificate trading in the Indian carbon market from time to time.
- The registry for the Indian carbon market will be Grid Controller of India.
- The BEE will identify the sectors, set targets for reduction in emissions, issue carbon credit certificates and accredit the carbon verification agencies.
- The obligated entities will be issued carbon credit certificates if they do better than their set target of emission reduction.
- Entities unable to achieve their target will meet the shortfall by purchasing the certificates from the carbon market.
