**Executive Summary**
The Carbon Credit Trading Scheme (CCTS) has been notified to reduce greenhouse gas emissions in India by pricing emissions through trading Carbon Credit Certificates (CCC). The scheme aims to operationalize the Indian Carbon Market (ICM) by establishing an institutional framework and Greenhouse Gas Emission Intensity (GEI) targets. Shri Shripad Naik, Minister of State in the Ministry of Power, provided this information in a Lok Sabha reply.
**Key Points / Main Content**
* **Scheme Objectives and Measures:**
* CCTS aims to reduce, remove, or avoid greenhouse gas emissions from the Indian economy.
* The government has taken measures to operationalize the Indian Carbon Market (ICM).
* Greenhouse Gas Emission Intensity (GEI) targets have been notified for seven energy-intensive sectors.
* Approved methodologies, a monitoring framework, and procedures for accrediting carbon verification agencies are in place.
* **Participation and Eligibility:**
* Industries, as obligated entities in the ICM, should reduce emissions by improving efficiency and adopting low-carbon technologies.
* Entities exceeding their GEI targets are eligible for CCC, tradable through power exchanges.
* Non-obligated entities (e.g., renewable energy producers) can voluntarily register mitigation activities to seek CCC.
* **Financial and Regulatory Support:**
* Financial support for CCTS implementation is from the Bureau of Energy Efficiency through fees and charges collected from entities.
* Regulatory support for carbon credit trading is provided by the Central Electricity Regulatory Commission.
* **Institutional Arrangements:**
* A National Steering Committee co-chaired by the Secretaries of the Ministry of Power and the Ministry of Environment, Forest and Climate Change oversees the scheme.
* Grid Controller of India Limited functions as the Registry.
* The Bureau of Energy Efficiency serves as the Administrator.
**Impact Analysis**
**Obligated Entities (Industries)**
* **Impact:** Required to reduce emissions by improving efficiency and adopting low-carbon technologies to meet GEI targets.
* **Action Required:** Implement strategies to reduce emissions, track performance against GEI targets, and participate in the carbon credit trading market.
**Non-Obligated Entities (Renewable Energy Producers)**
* **Impact:** Opportunity to generate revenue by registering approved mitigation activities and seeking issuance of CCCs.
* **Action Required:** Register approved mitigation activities and participate in the carbon credit trading market.
**Bureau of Energy Efficiency**
* **Impact:** Responsible for providing financial support for CCTS implementation.
* **Action Required:** Manage and allocate funds collected under the Scheme.
**Central Electricity Regulatory Commission**
* **Impact:** Responsible for providing regulatory support for carbon credit trading activities.
* **Action Required:** Oversee carbon credit trading.
**Ministry of Power and Ministry of Environment, Forest and Climate Change**
* **Impact:** Play a key role in the institutional arrangement of the Scheme
* **Action Required:** Provide leadership for the scheme through the National Steering Committee.
Key Entities Referenced
Carbon Credit Trading Scheme (CCTS): A scheme designed to reduce greenhouse gas emissions from the Indian economy through the trading of Carbon Credit Certificates (CCC).
Indian Carbon Market (ICM): A market established to operationalize the trading of carbon credits in India, including setting Greenhouse Gas Emission Intensity (GEI) targets.
Ministry of Power: A central ministry involved in the implementation and oversight of the Carbon Credit Trading Scheme.
Bureau of Energy Efficiency: Provides financial support for implementing CCTS and acts as an administrator.
Central Electricity Regulatory Commission: Provides regulatory support for trading activities under the Indian Carbon Market.
Ministry of Power
CARBON CREDIT TRADING SCHEME
Posted On: 05 FEB 2026 2:19PM by PIB Delhi
The Carbon Credit Trading Scheme (CCTS) has been notified with the objective of reducing, removing, or
avoiding greenhouse gas emissions from the Indian economy by pricing such emissions through the
trading of Carbon Credit Certificates (CCC).
The Government has taken several measures to operationalise the Indian Carbon Market (ICM), including
establishment of the requisite institutional framework, notification of Greenhouse Gas Emission Intensity
(GEI) targets for seven energy-intensive sectors under the compliance mechanism. Further, approved
methodologies under the offset mechanism, a robust monitoring, reporting and verification framework,
and procedures for accreditation of carbon verification agencies have been put in place.
In the ICM, industries, as obligated entities, are envisaged to reduce emissions by improving efficiency
and adopting low-carbon technologies. Entities that over-achieve their notified Greenhouse Gas Emission
Intensity (GEI) targets are eligible for issuance of CCC, which are tradable through power exchanges.
Non-obligated entities, including renewable energy producers, may voluntarily register approved
mitigation activities for the purpose of seeking issuance of CCC.
The financial support for implementation of the CCTS is to be met by the Bureau of Energy Efficiency
from the fees and charges collected from entities under the Scheme and its own resources. Regulatory
support for trading activities under the Indian Carbon Market, including matters relating to trading of
carbon credit certificates, is provided by the Central Electricity Regulatory Commission.
The institutional arrangements for implementation of the Scheme comprise a National Steering Committee
co-chaired by the Secretaries of the Ministry of Power and the Ministry of Environment, Forest and
Climate Change, with Grid Controller of India Limited functioning as the Registry and the Bureau of
Energy Efficiency serving as the Administrator.
This Information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a
written reply in the Lok Sabha today.
************
NR/AP/MD
(Release ID: 2223703) Visitor Counter : 394
Read this release in: Urdu , ही , Marathi , Tamil