India Releases Carbon Credit Trading Scheme

The launch of the Carbon Credit Trading Scheme has been announced by the Power Ministry of India for June 28, 2023. The plan outlines each institution’s specific responsibilities for putting the Indian carbon credit trading plan into action. Carbon credits certificates (CCCs) will be awarded to required entities that achieve their greenhouse gas emission targets. Those that don’t can make up the difference by buying carbon credit certificates. Since it was published in the gazette, this plan is now in effect.

Below are the respective duties of each institution.

Governance: National Steering Committee for Indian Carbon Market
Established when the Indian carbon market was formed. Representatives from the Ministry of Power, Ministry of Finance, Ministry of New and Renewable Energy, Bureau of Energy Efficiency, and numerous other ministries and agencies will sit on the committee.

● Monitor the functions of Indian carbon market
● Recommend to Bureau of Energy Efficiency, for the formulation of rules and procedures of carbon market, greenhouse gases emission targets, guidelines regarding trading of carbon credit certificates outside India, etc.
● Determine the criteria for issuance of CCC and its validity, floor and forbearance price, requirement and format for submissions and other related compliance mechanisms

Administrate: Bureau of Energy Efficiency (BEE)

● Identify sectors and potential for reduction of greenhouse gases emissions
● Develop compliance trajectory and targets for entities
● Issue CCC
● Conduct studies of setting CCC obtaining standards for each sectors

Registry: The Grid Controller of India
● Maintain database of registration of entities dealing with CCC
● Maintain records of CCC transactions

Regulator: Central Electricity Regulatory Commission

● Regulate matters relating to trading of CCC
● Regulate frequency of CCC trading
● Provide market oversight and take necessary preventive actions to prevent fraud or mistrust.