The framework for the Indian Carbon Market under the Carbon Credit Trading Scheme (CCTS) has been formulated. The institutional structure comprises a National Steering Committee co-chaired by the Secretaries of the Ministry of Power and the Ministry of Environment, Forest and Climate Change, with Grid India functioning as the Registry and the Bureau of Energy Efficiency (BEE) serving as the Administrator.
The CCTS operates through two mechanisms: i) The Compliance Mechanism and the Offset Mechanism. Under the Compliance Mechanism, emission-intensive industries designated as Obligated Entities are required to meet assigned Greenhouse Gas Emission Intensity (GEI) targets, and entities that outperform their targets are eligible for Carbon Credit Certificates; ii) Under the Offset Mechanism, Non-Obligated Entities may voluntarily register projects that reduce, remove or avoid greenhouse gas emissions for the purpose of seeking issuance of Carbon Credit Certificates.
Thermal power plants have not been transitioned from the PAT scheme to the CCTS Compliance Mechanism.
