Parliament Question: Carbon Credit Trading Scheme

GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.3221 ANSWERED ON 12.03.2026 CARBON CREDIT TRADING SCHEME 3221. SMT. SANJNA JATAV: SHRI PRATAP CHANDRA SARANGI: SMT. ROOPKUMARI CHOUDHARY: SHRI PRAVEEN PATEL: SHRI P C MOHAN: SHRI BHARATSINHJI SHANKARJI DABHI: SHRI CAPTAIN BRIJESH CHOWTA: SHRI DAMODAR AGRAWAL: DR. VINOD KUMAR BIND: SMT. MAHIMA KUMARI MEWAR: Will the Minister of POWER be pleased to state: (a) the implementation status of the Carbon Credit Trading Scheme including operationalisation of the Measurement Reporting and Verification (MRV) framework for the Indian Carbon Market; (b) the institutional arrangements established for the scheme including the National Steering Committee, the role of the Bureau of Energy Efficiency (BEE) as administrator and the Grid India as Registry along with its current operational status; (c) the progress in transitioning nine energy intensive sectors from the Perform, Achieve and Trade (PAT) scheme to the Carbon Credit Trading Scheme including the number of obligated entities registered and carbon credits issued and traded, State-wise including Rajasthan especially Bharatpur Lok Sabha Constituency; (d) whether the Government proposes to expand offset mechanisms or integrate the Indian Carbon Market with international markets and if so, the details thereof; and (e) the manner in which major technology and innovation hubs such as Bengaluru can contribute to the Indian Carbon Market through green industries startups and urban climate initiatives and the phased roadmap for expanding participation of industries and urban local bodies in such cities under the scheme? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK) (a) & (b): The Carbon Credit Trading Scheme (CCTS) was notified by the Central Government in June 2023. For its implementation, the Bureau of Energy Efficiency (BEE) has issued the Detailed Procedure for Compliance Mechanism under CCTS, establishing a comprehensive Measurement, Reporting and Verification (MRV) framework to ensure accurate and transparent compliance. BEE has also released the Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agencies and the Detailed Procedure for Offset Mechanism under CCTS.The institutional framework for CCTS is already operational. It includes 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 India acting as the Registry, BEE as the Administrator, and the Central Electricity Regulatory Commission (CERC) as the Regulator for the Indian carbon market. (c): Seven energy-intensive sectors—Aluminium, Cement, Chlor-Alkali, Pulp and Paper, Petrochemicals, Petroleum Refinery, and Textile—have been transitioned from Perform Achieve and Trade Scheme (PAT) to the CCTS. Under these sectors, a total of 490 obligated entities have been assigned Greenhouse Gas Emission Intensity targets, of which 64 are located in the State of Rajasthan. The state-wise details of all 490 obligated entities, including those in Rajasthan, are provided in Annexure-I. At present, no Carbon Credit Certificates have been issued to any obligated entity under CCTS. (d): At present, there is no proposal to further expand the Offset Mechanism under CCTS. The Government has already notified the sectors eligible for project registration under the mechanism, namely Energy, Industries, Agriculture, Waste Handling and Disposal, Forestry, Transport, Fugitive Emissions, Construction, Solvent Use, and Carbon Capture, Utilization and Storage (CCUS). Further, the Government has finalized thirteen activities eligible for international trading of carbon credits under Article 6.2 and Article 6.4 of the Paris Agreement. The list of approved activities is enclosed at Annexure–II. (e): Under the Offset Mechanism of CCTS, non-obligated entities including industries and urban local bodies, may voluntarily register approved mitigation activities for the purpose of seeking issuance of Carbon Credit Certificates. To facilitate this, the Bureau has developed nine methodologies under offset mechanism, which provide standardized approaches for quantifying and verifying emission reductions or removals. Details of methodologies are enclosed at Annexure-III. **********ANNEXURE-I ANNEXURE REFERRED IN REPLY TO PART (c) OF UNSTARRED QUESTION NO. 3221 ANSWERED IN THE LOK SABHA ON 12.03.2026 ************* Total number of Obligated State Entities Andhra Pradesh 30 Assam 8 Bihar 4 Chhattisgarh 11 Dadra & Nagra 17 Gujarat 71 Haryana 9 Himachal Pradesh 14 Jammu & Kashmir 1 Jharkhand 7 Karnataka 22 Kerala 3 Madhya Pradesh 29 Maharashtra 29 Meghalaya 8 Odisha 18 Puducherry 2 Punjab 26 Rajasthan 64 Tamil Nadu 41 Telangana 21 Uttar Pradesh 34 Uttarakhand 6 West Bengal 15 Total 490Obligated Entities in the State of Rajasthan District Total number of Obligated Entities Kota 4 Alwar 5 Sirohi 2 Chittorgarh 8 Udaipur 3 Ajmer 1 Pali 4 Bundi 1 Kotputli 1 Nagaur 1 Jodhpur 1 Sri Ganganagar 1 Sikar 2 Bhilwara 23 Banswara 6 Jhalawar 1 Total 64 **************ANNEXURE-II ANNEXURE REFERRED IN REPLY TO PART (d) OF UNSTARRED QUESTION NO. 3221 ANSWERED IN THE LOK SABHA ON 12.03.2026 ************* List of activities approved by NDAIPA I. GHG Mitigation Activities: 1. Renewable energy with storage (only stored component) 1. Solar thermal power 2. Off- shore wind 3. Green Hydrogen 4. Compressed biogas 5. Emerging mobility solutions like fuel cells 6. High end technology for energy efficiency 7. Sustainable Aviation Fuel 9. Best available technologies for process improvement in hard to abate sectors 10. Tidal energy, Ocean Thermal Energy, Ocean Salt Gradient Energy, Ocean Wave Energy and Ocean Current Energy 11. High Voltage Direct Current Transmission in conjunction with the renewable energy projects II Alternate Materials: 12. Green Ammonia II. Removal Activities: 13. Carbon Capture Utilization and Storage ***********ANNEXURE-III ANNEXURE REFERRED IN REPLY TO PART (e) OF UNSTARRED QUESTION NO. 3221 ANSWERED IN THE LOK SABHA ON 12.03.2026 ************* List of methodologies in the offset mechanism under CCTS 1. BM EN01.001 - Grid-connected electricity generation from renewable sources 2. BM EN01.002 - Hydrogen production from electrolysis of water 3. BM IN02.001 Energy efficiency and fuel switching measures for industrial facilities 4. BM IN02.002 Hydrogen production using methane extracted from biogas 5. BM WA03.001 Landfill methane recovery 6. BM WA03.002 Flaring or use of landfill gas 7. BM AG04.002 Methane recovery from livestock and manure management at households and small farms 8. BM FR05.001 Afforestation and reforestation of degraded mangrove habitats 9. BM FR05.002 Afforestation and reforestation of lands except wetlands *************