Carbon Credit Trading Scheme Notified To Cut Emissions, Says MoS Power

New Delhi, Feb 5 (KNN) Minister of State for Power Shripad Naik, in a written reply to a question in Lok Sabha on Thursday, said that the Carbon Credit Trading Scheme (CCTS) has been notified with the aim of reducing, removing, or avoiding greenhouse gas emissions.

Naik said the government has taken several steps to operationalise the Indian Carbon Market (ICM). These include setting up the required institutional framework and notifying Greenhouse Gas Emission Intensity (GEI) targets for seven energy-intensive sectors under the compliance mechanism.

Framework and Market Mechanism

The minister stated that approved methodologies under the offset mechanism have been finalised, along with a monitoring, reporting and verification framework. Procedures for accrediting carbon verification agencies have also been put in place.

Under the Indian Carbon Market, obligated industrial entities are expected to reduce emissions by improving efficiency and adopting low-carbon technologies. 

Entities that exceed their notified GEI targets will be eligible to receive Carbon Credit Certificates, which can be traded through power exchanges. 

Non-obligated entities, including renewable energy producers, may voluntarily register approved emission-reduction activities to seek issuance of CCC.

Financial and Regulatory Support

According to the minister, financial support for implementing the scheme will be met by the Bureau of Energy Efficiency (BEE) through fees and charges collected from participating entities, along with its own resources. 

Regulatory oversight of trading activities under the Indian Carbon Market, including carbon credit trading, is being provided by the Central Electricity Regulatory Commission.

Institutional Structure

The institutional framework for implementing the scheme includes a National Steering Committee, co-chaired by the Secretaries of the Power and Environment Ministries. Grid Controller of India Limited will function as the registry, while BEE will act as the administrator of the scheme.

(KNN Bureau)