The power ministry has notified the Carbon Credit Trading Scheme, 2023, to build the domestic carbon market as the government strives to decarbonize the economy and cut emissions by 45% from 2005 levels by 2030.
The program creates a 20-22-member national steering committee (NSC) led by the electricity and environment secretaries to oversee the carbon market.
The Central Electricity Regulatory Commission (CERC) will regulate trade. At the same time, the Bureau of Energy Efficiency (BEE) finalizes the procedures for institutionalizing the Indian carbon market and creates the rules and regulations under NSC supervision. The Grid Controller of India would be the carbon market registry. The BEE will select sectors, set emission objectives, issue carbon credits, and accredit carbon verification agencies.
If they reduce emissions more than expected, obligated entities will receive carbon credit certificates. Those who fall short will buy carbon market certificates.