{"id":54876,"date":"2025-07-14T13:46:54","date_gmt":"2025-07-14T08:16:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=54876"},"modified":"2025-07-14T14:48:02","modified_gmt":"2025-07-14T09:18:02","slug":"carbon-credit-trading-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/carbon-credit-trading-scheme\/","title":{"rendered":"Carbon Credit Trading Scheme (CCTS)"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">Carbon Credit Trading Scheme (CCTS) Latest News<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the Indian government announced greenhouse gas emissions intensity targets for entities in eight of the nine heavy industrial sectors participating in the Carbon Credit Trading Scheme&#8217;s compliance mechanism.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is CCTS?<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>Carbon Credit Trading Scheme (CCTS)<\/b><span style=\"font-weight: 400;\"> is a <\/span><b>market-based framework<\/b><span style=\"font-weight: 400;\"> developed under the <\/span><b>Indian Carbon Market (ICM)<\/b><span style=\"font-weight: 400;\"> to <\/span><b>regulate and trade carbon credits<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It aims to accelerate India\u2019s transition to a <\/span><b>low-carbon economy<\/b><span style=\"font-weight: 400;\"> by assigning a <\/span><b>monetary value to greenhouse gas (GHG) emissions<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Objective: <\/b><span style=\"font-weight: 400;\">The primary aim of CCTS is to <\/span><b>decarbonise industrial sectors<\/b><span style=\"font-weight: 400;\"> by shifting focus from <\/span><b>energy efficiency (PAT Scheme)<\/b><span style=\"font-weight: 400;\"> to <\/span><b>GHG emissions intensity<\/b><span style=\"font-weight: 400;\"> reductions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The CCTS is overseen by the <\/span><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/bureau-of-energy-efficiency\/\" target=\"_blank\">Bureau of Energy Efficiency<\/a> (BEE)<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>National Steering Committee for Indian Carbon Market (NSCICM)<\/b><span style=\"font-weight: 400;\">, ensuring <\/span><b>transparent and accountable governance<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Transition from PAT to CCTS<\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">India\u2019s earlier <\/span><b>Perform, Achieve, and Trade (PAT) scheme<\/b><span style=\"font-weight: 400;\"> emphasised <\/span><b>energy efficiency improvements<\/b><span style=\"font-weight: 400;\"> in energy-intensive sectors through <\/span><b>Energy Saving Certificates (ESCerts)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>CCTS supersedes PAT<\/b><span style=\"font-weight: 400;\">, focusing on <\/span><b>direct GHG emissions intensity<\/b><span style=\"font-weight: 400;\"> and issuing <\/span><b>Carbon Credit Certificates (CCC)<\/b><span style=\"font-weight: 400;\">, each representing <\/span><b>1 tonne of CO\u2082 equivalent reduced<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><b>Target sectors (Compliance Mechanism): <\/b><span style=\"font-weight: 400;\">CCTS mandates participation from <\/span><b>eight high-emission sectors<\/b><span style=\"font-weight: 400;\">: <\/span><b>aluminium<\/b><span style=\"font-weight: 400;\">, <\/span><b>cement<\/b><span style=\"font-weight: 400;\">, <\/span><b>pulp &amp; paper<\/b><span style=\"font-weight: 400;\">, <\/span><b>chlor-alkali<\/b><span style=\"font-weight: 400;\">, <\/span><b>iron &amp; steel<\/b><span style=\"font-weight: 400;\">, <\/span><b>textiles<\/b><span style=\"font-weight: 400;\">, <\/span><b>petrochemicals<\/b><span style=\"font-weight: 400;\">, and <\/span><b>refineries<\/b><span style=\"font-weight: 400;\">. These sectors account for <\/span><b>~16% of India\u2019s total GHG emissions<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><b>Power sector exclusion: <\/b><span style=\"font-weight: 400;\">The <\/span><b>power sector<\/b><span style=\"font-weight: 400;\">, which contributes <\/span><b>~40% of India\u2019s total GHG emissions<\/b><span style=\"font-weight: 400;\">, is currently <\/span><b>excluded<\/b><span style=\"font-weight: 400;\"> from the compliance mechanism but may be <\/span><b>included in later phases<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Key Mechanisms under CCTS<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compliance mechanism<\/b><span style=\"font-weight: 400;\">: Entities in obligated sectors must meet <\/span><b>sector-specific emission intensity targets<\/b><span style=\"font-weight: 400;\">. Those who exceed targets earn <\/span><b>tradable CCCs<\/b><span style=\"font-weight: 400;\">, while others must <\/span><b>buy credits<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Offset mechanism<\/b><span style=\"font-weight: 400;\">: Entities outside the compliance mandate can <\/span><b>voluntarily participate<\/b><span style=\"font-weight: 400;\"> by reducing emissions and earning carbon credits, promoting <\/span><b>broader climate participation<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under its <\/span><b>Nationally Determined Contributions (NDCs)<\/b><span style=\"font-weight: 400;\">, India targets a <\/span><b>45% reduction in emission intensity<\/b><span style=\"font-weight: 400;\"> of its GDP by <\/span><b>2030<\/b><span style=\"font-weight: 400;\"> (relative to 2005 levels). The CCTS is a <\/span><b>key policy instrument<\/b><span style=\"font-weight: 400;\"> toward achieving this goal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The eight sectors include aluminium, cement, paper and pulp, chlor-alkali, iron and steel, textiles, petrochemicals, and petro refineries.<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/assessing-indias-carbon-credit-trading-scheme-targets\/article69808116.ece\" target=\"_blank\" rel=\"nofollow noopener\"><b>TH<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Carbon Credit Trading Scheme (CCTS) is a market-based framework developed under the Indian Carbon Market (ICM) to regulate and trade carbon credits. Read more about Carbon Credit Trading Scheme, Meaning, Objectives, Mechanism, News<\/p>\n","protected":false},"author":8,"featured_media":54835,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1528],"class_list":{"0":"post-54876","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-carbon-credit-trading-scheme","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/54876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=54876"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/54876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/54835"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=54876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=54876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=54876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}