The Central Government, in collaboration with the Bureau, has introduced amendments to the Carbon Credit Trading Scheme, 2023, as outlined in the Energy Conservation Act, 2001. The key changes focus on an “offset mechanism,” allowing non-obligated entities to register projects for tracking and certifying reductions or avoidance of greenhouse gas emissions.
Under this offset mechanism, non-obligated entities can now register projects for the issuance of Carbon Credit Certificates. The Bureau, with input from technical committees, will recommend sectors and methodologies for these entities to generate carbon credits. Additionally, it will establish standards and register projects under this offset mechanism.
The amendments also include adjustments to the Principal Scheme, specifying that non-obligated entities can either generate or validate projects. Moreover, the compliance mechanism now involves giving a target for emission reduction. The offset mechanism aims to facilitate the accounting of greenhouse gas emission reduction, removal, or avoidance.
The Bureau, supported by technical committees, will identify sectoral scope and methodologies for the offset mechanism. The National Steering Committee for the Indian carbon market, in consultation with the Central Government, will approve and periodically publish these sectoral scope and methodologies.
Non-obligated entities can register their projects based on the published sectoral methodologies for greenhouse gas emission reduction, removal, or avoidance, seeking Carbon Credit Certificates.
The Principal Scheme’s adjustments eliminate the words “under compliance mechanism” in paragraph 8, and a new paragraph, 11A, introduces the offset mechanism. This mechanism will be guided by the Bureau, with support from technical committees, for identifying sectoral scope and methodologies. The registration of projects under the offset mechanism is a notable addition to paragraph 12, emphasizing the importance of validation in reporting. The amendments were officially published in the Gazette of India on June 28, 2023.
Please view the document below for more details.
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