Power Ministry notifies carbon credit trading scheme (CCTS)
Recently, a provision has been made in the Carbon Credit Trading Scheme, 2023 plan to set up a carbon credit trading market.
India aims to decarbonize the economy. Also, India is committed to cut carbon emissions by 45 percent from 2005 levels by 2030.
CCTS was first announced under the Energy Conservation Act, 2001. It was amended by the Energy Conservation (Amendment) Bill, 2022.
Key Points of CCTS
- A National Steering Committee (NSC) i.e. Indian Carbon Market Governing Board (ICMGB) will be constituted.
- It will be chaired by the Secretary, Ministry of Power and Environment. This committee will govern and oversee the functioning of the Indian Carbon Market (ICM).
The Bureau of Energy Efficiency (BEE) will be the administrator of the carbon market. In addition, he will also perform the following functions-
- Set targets to reduce emissions,
- Will issue carbon credit certificates, and give recognition to carbon verification agencies.
- The Central Electricity Regulatory Commission (CERC) will perform regulatory functions for all trading activities.
- The Grid Controller of India will act as the registry for the ICM.
The carbon market is a mechanism for pricing carbon emissions. Carbon markets establish trading systems where carbon credits or allowances are bought and sold.
A carbon credit is a type of tradable permit. This is equal to one tons of carbon dioxide removed, reduced or sequestered from the atmosphere.
Source – The Hindu
