{"id":54876,"date":"2026-09-09T15:45:54","date_gmt":"2026-09-09T10:15:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=54876"},"modified":"2026-09-09T15:55:38","modified_gmt":"2026-09-09T10:25:38","slug":"carbon-credit-trading-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/carbon-credit-trading-scheme\/","title":{"rendered":"India&#8217;s Carbon Credit Trading Scheme (CCTS), Latest News"},"content":{"rendered":"<h2><strong>Carbon Credit Trading Scheme (CCTS) Latest News<\/strong><\/h2>\n<p><strong data-start=\"92\" data-end=\"169\">United Kingdom has recognised India\u2019s Carbon Credit Trading Scheme (CCTS)<\/strong> as an eligible carbon pricing mechanism under its <strong data-start=\"220\" data-end=\"265\">Carbon Border Adjustment Mechanism (CBAM)<\/strong>. The move is expected to reduce the carbon-related tax burden on Indian exporters selling eligible goods in the U.K.<\/p>\n<h2><strong>Carbon Credit Trading Scheme (CCTS) Key Highlights<\/strong><\/h2>\n<ul data-start=\"404\" data-end=\"2243\">\n<li data-section-id=\"1wv8s56\" data-start=\"404\" data-end=\"633\"><strong data-start=\"406\" data-end=\"434\">Recognition by the U.K.:<\/strong> The U.K. HM Treasury has included India\u2019s <strong data-start=\"477\" data-end=\"516\">Carbon Credit Trading Scheme (CCTS)<\/strong> in its indicative list of overseas carbon pricing schemes that can qualify for relief under the U.K. CBAM framework.<\/li>\n<li data-section-id=\"1whrb0k\" data-start=\"635\" data-end=\"863\"><strong data-start=\"637\" data-end=\"669\">Benefit to Indian exporters:<\/strong> U.K. importers of eligible Indian goods can claim <strong data-start=\"720\" data-end=\"743\">carbon price relief<\/strong> for the carbon price already paid on those goods under India\u2019s CCTS, subject to the required evidence and verification.<\/li>\n<li data-section-id=\"1ccqu97\" data-start=\"865\" data-end=\"1043\"><strong data-start=\"867\" data-end=\"899\">Reduction in CBAM liability:<\/strong> The recognition can lower the <strong data-start=\"930\" data-end=\"973\">effective CBAM burden on Indian exports<\/strong>, helping Indian exporters remain more competitive in the U.K. market.<\/li>\n<li data-section-id=\"1ibo9qq\" data-start=\"1257\" data-end=\"1457\"><strong data-start=\"1259\" data-end=\"1288\">Avoiding double taxation:<\/strong> The recognition follows the principle that goods should not face <strong data-start=\"1354\" data-end=\"1379\">double carbon pricing<\/strong> when an eligible carbon price has already been paid in the country of origin.<\/li>\n<li data-section-id=\"x0o4ky\" data-start=\"1459\" data-end=\"1699\"><strong data-start=\"1461\" data-end=\"1498\">Continued India-U.K. cooperation:<\/strong> Both countries will continue discussions on <strong data-start=\"1543\" data-end=\"1586\">carbon pricing and carbon market design<\/strong> through the <strong data-start=\"1599\" data-end=\"1648\">U.K.-India Energy Memorandum of Understanding<\/strong> and the <strong data-start=\"1657\" data-end=\"1698\">Partnership for Market Implementation<\/strong>.<\/li>\n<li data-section-id=\"1288j70\" data-start=\"1701\" data-end=\"1965\"><strong data-start=\"1703\" data-end=\"1751\">Relief will depend on actual carbon pricing:<\/strong> The amount of CBAM relief will depend on the <strong data-start=\"1797\" data-end=\"1823\">effective carbon price<\/strong> paid for the goods under India\u2019s system. U.K. CBAM- liable persons will still have to meet the required verification and documentation rules.<\/li>\n<li data-section-id=\"1ksir5q\" data-start=\"1967\" data-end=\"2243\"><strong data-start=\"1969\" data-end=\"1999\">Recent trade relationship:<\/strong> India and the U.K. implemented a <strong data-start=\"2033\" data-end=\"2098\">Comprehensive Economic and Trade Partnership on July 15, 2026<\/strong>. Merchandise trade between the two countries was <strong data-start=\"2148\" data-end=\"2176\">$25.1 billion in 2025-26<\/strong>, while bilateral services trade reached <strong data-start=\"2217\" data-end=\"2242\">$35.4 billion in 2024<\/strong>.<\/li>\n<\/ul>\n<h2><strong>What is India&#8217;s Carbon Credit Trading Scheme (CCTS)?<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>India\u2019s Carbon Credit Trading Scheme (CCTS)<\/b><span style=\"font-weight: 400;\"> is a <\/span><b>market-based mechanism<\/b><span style=\"font-weight: 400;\"> introduced to reduce <strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/greenhouse-gases\/\" target=\"_blank\">greenhouse gas (GHG)<\/a><\/strong> emissions by putting a value on emission reductions and allowing carbon credits to be traded.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme forms an important part of the <\/span><b>Indian Carbon Market (ICM)<\/b><span style=\"font-weight: 400;\"> and aims to encourage industries and other entities to adopt cleaner technologies and reduce their carbon footprint.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The legal foundation for the carbon market was created through the <\/span><b>Energy Conservation (Amendment) Act, 2022<\/b><span style=\"font-weight: 400;\">. It empowered the Central Government to establish a carbon trading scheme and provide for the issuance of <\/span><b>Carbon Credit Certificates (CCCs)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the CCTS, <\/span><b>one Carbon Credit Certificate represents one tonne of CO\u2082 equivalent (tCO\u2082e) of greenhouse gas emission reduction or removal<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is developing a <\/span><b>national carbon market framework<\/b><span style=\"font-weight: 400;\"> with an electronic registry and trading platform to make carbon credit transactions more transparent, organised and reliable.<\/span><\/li>\n<\/ul>\n<h2><b>Carbon Credit Trading Scheme (CCTS) Objectives<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The main objective of CCTS is to <\/span><b>accelerate the decarbonization of the Indian economy<\/b><span style=\"font-weight: 400;\"> by giving greenhouse gas emission reductions an economic value.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It encourages industries to adopt <\/span><b>energy-efficient processes, renewable energy, cleaner technologies and other low-carbon solutions<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme supports India\u2019s climate commitments under the <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/paris-agreement\/\" target=\"_blank\"><b>Paris Agreement<\/b><\/a><span style=\"font-weight: 400;\">. India revised its NDC in 2022 and committed to reducing the <\/span><b>emission intensity of its GDP by 45% by 2030 from the 2005 level<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CCTS can help bring greater <\/span><b>private-sector participation<\/b><span style=\"font-weight: 400;\"> in climate action by creating financial incentives for entities that achieve additional emission reductions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme also provides a framework for sectors outside the mandatory compliance system to participate through the <\/span><b>voluntary offset mechanism<\/b><span style=\"font-weight: 400;\">, expanding the scope of domestic carbon reduction activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A well-functioning carbon market can encourage investment in areas such as <\/span><b>renewable energy, green hydrogen, industrial efficiency, forestry, waste management and carbon removal technologies<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s experience with market-based schemes such as <\/span><b>PAT, Energy Saving Certificates, Renewable Energy Certificates and Clean Development Mechanism projects<\/b><span style=\"font-weight: 400;\"> provides a foundation for developing a larger domestic carbon market.<\/span><\/li>\n<\/ul>\n<h2><b>How Does India&#8217;s Carbon Credit Trading Scheme Work?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The working of <\/span><b>India&#8217;s Carbon Credit Trading Scheme<\/b><span style=\"font-weight: 400;\"> is based on emission-intensity targets, carbon credit generation and trading. It combines mandatory participation for selected industries with voluntary participation through eligible projects.<\/span><\/p>\n<h3><b>Compliance Mechanism<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the compliance mechanism, the government sets <\/span><b>sector-specific GHG emission-intensity targets<\/b><span style=\"font-weight: 400;\"> for obligated industrial entities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These targets determine the amount of greenhouse gas emissions allowed in relation to a particular level of production or output.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Entities that <\/span><b>perform better than their prescribed targets<\/b><span style=\"font-weight: 400;\"> by lowering their emission intensity can receive <\/span><b>tradable Carbon Credit Certificates<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Entities that fail to meet their targets may need to <\/span><b>purchase and surrender carbon credits<\/b><span style=\"font-weight: 400;\"> to cover the shortfall.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This creates a financial incentive for industries to improve efficiency, adopt cleaner technologies and reduce their emissions.<\/span><\/li>\n<\/ul>\n<h3><b>Offset Mechanism<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>offset mechanism<\/b><span style=\"font-weight: 400;\"> allows entities outside the mandatory compliance system to voluntarily participate in the carbon market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Eligible projects can reduce, remove or avoid GHG emissions and generate carbon credits after meeting the required conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Projects undergo processes such as <\/span><b>validation, monitoring and verification<\/b><span style=\"font-weight: 400;\"> to establish that the claimed emission reductions are genuine.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The mechanism can encourage climate action in areas such as <\/span><b>agriculture, forestry, clean cooking, renewable energy, industrial efficiency and other emission-reduction activities<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><b>Role of Carbon Credit Certificates in India<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Carbon Credit Certificates (CCCs)<\/b><span style=\"font-weight: 400;\"> are the basic tradable units under India\u2019s Carbon Credit Trading Scheme. <\/span><b>Each CCC represents one tonne of CO\u2082 equivalent (tCO\u2082e) of emission reduction or removal<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CCCs provide a <\/span><b>financial value to verified emission reductions<\/b><span style=\"font-weight: 400;\">, allowing entities that perform better than their targets to benefit from their additional climate action.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the compliance mechanism, an entity that <\/span><b>reduces its emission intensity below the prescribed target<\/b><span style=\"font-weight: 400;\"> may receive CCCs, while an entity that falls short can use purchased certificates to meet its compliance requirement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CCCs are issued through the <\/span><b>Indian Carbon Market Registry<\/b><span style=\"font-weight: 400;\"> after the required assessment and verification process. They can then be traded through an approved electronic trading platform.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The system depends on reliable <\/span><b>Monitoring, Reporting and Verification (MRV)<\/b><span style=\"font-weight: 400;\"> to ensure that the claimed emission reductions are genuine and to reduce the risks of double counting or inaccurate reporting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Carbon Credit Certificates can therefore create a <\/span><b>market incentive for emission reduction<\/b><span style=\"font-weight: 400;\">, while also providing flexibility to entities in meeting their climate-related obligations.<\/span><\/li>\n<\/ul>\n<h2><b>Policy Support for India&#8217;s Carbon Credit Trading Scheme<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The development of <\/span><b>India&#8217;s Carbon Credit Trading Scheme<\/b><span style=\"font-weight: 400;\"> is supported by several national laws, missions and programmes aimed at reducing energy consumption and greenhouse gas emissions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>Energy Conservation (Amendment) Act, 2022<\/b><span style=\"font-weight: 400;\"> provides the legal foundation for India&#8217;s carbon market and empowers the Central Government to establish the carbon credit framework and issue carbon credit certificates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/national-green-hydrogen-mission\/\" target=\"_blank\"><b>National Green Hydrogen Mission<\/b><\/a><span style=\"font-weight: 400;\"> is supported by the carbon-crediting methodologies approved in March 2025 and aims to produce <\/span><b>5 million metric tonnes (MMT) of green hydrogen annually by 2030<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>Perform, Achieve and Trade (PAT) scheme<\/b><span style=\"font-weight: 400;\">, implemented by the <\/span><b>Bureau of Energy Efficiency (BEE) since 2012<\/b><span style=\"font-weight: 400;\">, has helped reduce energy and emission intensity in designated industries by around <\/span><b>15-25% over its lifecycle<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India also aims to install <\/span><b>500 GW of non-fossil fuel-based electricity capacity by 2030<\/b><span style=\"font-weight: 400;\">, supporting the country&#8217;s broader clean-energy transition.<\/span><\/li>\n<\/ul>\n<h2><b>Government Measures to Strengthen Carbon Market Readiness<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India&#8217;s carbon market approach also reflects the principle of <\/span><b>Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC)<\/b><span style=\"font-weight: 400;\">, which recognises that countries have different development needs and capacities to address climate change.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mission LiFE<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>Green Credit Programme<\/b><span style=\"font-weight: 400;\"> encourage sustainable practices and greater public participation in environmental protection.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government has established the <\/span><b>National Steering Committee for the Indian Carbon Market (NSCICM)<\/b><span style=\"font-weight: 400;\"> to provide overall guidance for the development and functioning of the carbon market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>Bureau of Energy Efficiency (BEE)<\/b><span style=\"font-weight: 400;\">, under the Ministry of Power, plays a major role in administering and developing India&#8217;s carbon market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government is also working to encourage <\/span><b>greater private-sector participation<\/b><span style=\"font-weight: 400;\"> in carbon reduction and clean-technology projects.<\/span><\/li>\n<\/ul>\n<h3><b>Mission LiFE<\/b><\/h3>\n<p><b>Mission LiFE (Lifestyle for Environment)<\/b><span style=\"font-weight: 400;\"> is a global movement launched by India to encourage people to adopt more sustainable and environmentally responsible lifestyles.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It promotes simple behavioural changes such as <\/span><b>saving energy, reducing plastic use and adopting waste-reduction practices<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The mission seeks to influence consumer behaviour, markets and government policies in favour of environmental sustainability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its goals include mobilising <\/span><b>1 billion people globally by 2028<\/b><span style=\"font-weight: 400;\"> to take individual and collective action for environmental protection.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It also aims to transform <\/span><b>80% of Indian villages and urban local bodies into green communities<\/b><span style=\"font-weight: 400;\"> and create measurable environmental and climate benefits.<\/span><\/li>\n<\/ul>\n<h3><b>Green Credit Programme<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/green-credit-programme\/\" target=\"_blank\">Green Credit Programme<\/a> (GCP)<\/b><span style=\"font-weight: 400;\"> was established through the <\/span><b>Green Credit Rules, 2023<\/b><span style=\"font-weight: 400;\">, notified on <\/span><b>October 12, 2023<\/b><span style=\"font-weight: 400;\">, under the Environment (Protection) Act, 1986.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides a <\/span><b>voluntary, market-based mechanism<\/b><span style=\"font-weight: 400;\"> to encourage activities such as tree plantation on degraded forest land.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forest departments identify suitable degraded land parcels and register them as a dynamic <\/span><b>land bank<\/b><span style=\"font-weight: 400;\"> on the GCP portal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Government bodies, PSUs, NGOs, companies, philanthropies, societies and individuals<\/b><span style=\"font-weight: 400;\"> can participate through the digital platform.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Participants undertake plantation activities within <\/span><b>two years<\/b><span style=\"font-weight: 400;\"> and maintain the plantations for <\/span><b>10 years<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Green Credits are awarded based on planted trees and are supported by <\/span><b>digital monitoring, field verification and third-party audits<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The programme aims to expand India&#8217;s <\/span><b>forest and tree cover<\/b><span style=\"font-weight: 400;\">, create an inventory of degraded land and reward voluntary environmentally responsible actions.<\/span><\/li>\n<\/ul>\n<h2><b>Institutional Framework and Future of India&#8217;s Carbon Credit Trading Scheme<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The success of <\/span><b>India&#8217;s Carbon Credit Trading Scheme<\/b><span style=\"font-weight: 400;\"> depends on a strong institutional structure that can set targets, monitor the market and ensure that carbon credits represent genuine emission reductions.<\/span><\/p>\n<h3><b>National Steering Committee for the Indian Carbon Market<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>National Steering Committee for the Indian Carbon Market (NSCICM)<\/b><span style=\"font-weight: 400;\"> is the key body responsible for providing overall direction to India&#8217;s carbon market.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It brings together representatives from relevant <\/span><b>ministries, state governments and industry experts<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The committee provides recommendations on the <\/span><b>rules, procedures and institutional structure<\/b><span style=\"font-weight: 400;\"> of the Indian carbon market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It helps formulate <\/span><b>GHG emission-intensity targets<\/b><span style=\"font-weight: 400;\"> for obligated entities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides guidance on <\/span><b>credit issuance, validity, renewal and international trading<\/b><span style=\"font-weight: 400;\"> of carbon credits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It can also constitute working groups and monitor the overall functioning of the carbon market.<\/span><\/li>\n<\/ul>\n<h3><b>Bureau of Energy Efficiency<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">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;\"> was established in <\/span><b>2002<\/b><span style=\"font-weight: 400;\"> under the <\/span><b>Energy Conservation Act, 2001<\/b><span style=\"font-weight: 400;\"> and plays a central role in India&#8217;s energy-efficiency and carbon-market framework.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">BEE develops policies, standards and programmes aimed at improving <\/span><b>energy efficiency and reducing energy intensity<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It uses a combination of <\/span><b>regulatory and market-based measures<\/b><span style=\"font-weight: 400;\"> to encourage energy conservation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its major areas of work include <\/span><b>standards and labelling for appliances, building energy codes, industrial efficiency norms, awareness programmes and capacity building<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Through these measures, BEE supports India&#8217;s broader efforts to reduce energy consumption and greenhouse gas emissions.<\/span><\/li>\n<\/ul>\n<h2><strong>Transition from PAT to CCTS<\/strong><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">India\u2019s earlier <\/span><b>Perform, Achieve, and Trade (<a href=\"https:\/\/vajiramandravi.com\/current-affairs\/what-is-perform-achieve-trade-pat-scheme\/\" target=\"_blank\">PAT<\/a>) 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","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":29,"featured_media":54835,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[1528,4993,5106],"class_list":["post-54876","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general-studies","tag-carbon-credit-trading-scheme","tag-environment","tag-environment-notes","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\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=54876"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/54876\/revisions"}],"predecessor-version":[{"id":123698,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/54876\/revisions\/123698"}],"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}]}}