The Carbon Credit Trading Scheme, 2023, is a progressive initiative introduced by the Ministry of Power aimed at regulating and incentivizing the reduction of greenhouse gas emissions in India. This scheme involves the issuance and trading of carbon credits, allowing entities to meet their emission targets effectively.
The carbon credit certificates will be issued by the Bureau of Energy Efficiency (BEE) to those entities that successfully surpass their assigned emission reduction targets.
The Ministry of Power, following recommendations from the Bureau of Energy Efficiency, is responsible for notifying which entities are obligated to comply with the trading scheme.
The emission intensity targets for the obligated entities are established by the Ministry of Environment, Forest, and Climate Change, based on recommendations provided by the Ministry of Power.
In cases where entities fail to reach their emission targets, they are required to compensate by purchasing carbon credit certificates. This mechanism ensures accountability and encourages compliance.
The trading of these certificates will occur on power exchanges that are registered with the Central Electricity Regulatory Commission (CERC), facilitating a structured marketplace for carbon credits.
The Grid Controller of India Limited (GCIL) plays a crucial role as the registry for the scheme, taking on the responsibilities of registering entities and maintaining a detailed record of all transactions.
The governance and oversight of the carbon market is managed by a National Steering Committee. This committee is chaired by the Power Secretary and includes representatives from various ministries, ensuring comprehensive oversight of the scheme.
Overall, the Carbon Credit Trading Scheme, 2023, represents a significant step towards fostering a sustainable and environmentally friendly future in India.
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