The Ministry of Power in India has released a draft titled “Carbon Credit Trading Scheme” for public feedback.
The objective of the draft is to establish a framework for the Indian carbon market. Comments on the draft scheme can be submitted to the government until April 14, 2023.
The proposed Energy Conservation (Amendment) Bill, 2022, which was passed by the Indian Parliament, empowers the Central Government to specify a Carbon Trading Scheme in consultation with the Bureau of Energy Efficiency (BEE). The ministry is currently finalizing the Carbon Credit Trading Scheme (CCTS).
The scheme outlines that an ‘Accredited Carbon Verifier’ is an agency accredited by the BEE to carry out validation or verification activities in relation to the CCTS. Carbon credit trading aims to reduce carbon emissions and address climate change. The ‘Carbon Credit Certificate’ (CCC) is the certificate issued to the registered entity by the central government, or any authorized agency, in the CCTS. Each certificate issued represents the reduction or removal of one tonne of CO2 equivalent (tCO2e).
The draft scheme also provides for the establishment of the Indian Carbon Market Governing Board (ICMGB). The governance of the Indian Carbon Market (ICM) and direct oversight of its administrative and regulatory functioning shall vest in the governing board, to be called as ICMGB.
The ICMGB will be chaired by the power and environment secretaries and shall meet at least once a quarter every year. It will recommend procedures for institutionalizing the Indian carbon market for approval by the central government.
