Objective:

  • Establishes India’s first compliance-based domestic carbon market.
  • Aims to promote low-carbon technologies and meet India’s NDCs under international climate agreements.

Nodal Ministry:

  • Ministry of Environment, Forest and Climate Change (MoEFCC)

Framework:

  • Implemented under the Carbon Credit Trading Scheme (CCTS), 2023.
  • Regulates carbon credit trading and emission reduction.

Sectors Covered:

  • Aluminium, Cement, Chlor-alkali, Pulp and Paper (High-emission sectors).

Gases Covered:

  • Carbon Dioxide (CO₂) and Perfluorocarbons (PFCs) like CF₄, C₂F₆, C₄F₁₀, C₆F₁₄.

Compliance Mechanism:

  • Two compliance periods: 2025-26 and 2026-27.
  • Emission targets can be met by:
    • Reducing emissions, or
    • Purchasing carbon credit certificates.

Benefits for Compliance:

  • Entities emitting below targets earn carbon credits.
  • Credits can be banked or traded in the Indian carbon market.

Penalty for Non-Compliance:

  • Underperforming entities pay twice the average traded carbon price.
  • Price calculated by Bureau of Energy Efficiency (Ministry of Power).
  • Penalty collected by Central Pollution Control Board (CPCB).

Published by Pragyanxetu

One Earth. One Future

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