India's Carbon Credit Trading Scheme (CCTS): how it works
A plain guide to India's Carbon Credit Trading Scheme: the law, who runs it, sector targets for 490 entities, the offset mechanism, CERC trading rules and the link to PAT.
How will trading work?
The CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026, dated 27 February 2026, set the trading rules:
- CCCs are traded only on power exchanges unless CERC permits another mode.
- There are two market segments: a Compliance Market for obligated entities and an Offset Market for non-obligated entities.
- Trading happens on a monthly basis or as CERC approves.
- In the compliance mechanism, trades happen within a floor price and a forbearance (ceiling) price approved by CERC on BEE's proposal.
This article does not give prices. Check the power exchanges and CERC orders for any price information.
Sources: Bureau of Energy Efficiency: Indian Carbon Market (CCTS) page; BEE: Detailed Procedure for Compliance Mechanism under the Indian Carbon Market; PIB (MoEFCC), 22 January 2026: Government notifies GHG Emission Intensity Targets for 208 more carbon-intensive industries; PIB (Ministry of Power), 28 March 2025: India's Carbon Offset Plan; PIB (Ministry of Power), 4 December 2025: Framework for CCTS established; PIB (Ministry of Power): Year End Review 2025; PIB (Ministry of Power), 21 March 2026: Prakriti 2026 and Indian Carbon Market Portal launch; CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026; CERC: Current Regulations index; PIB: Cabinet approves India's Nationally Determined Contribution (2031-2035) (25 March 2026)
This article was prepared with AI assistance and checked by the GreenEye team against the sources shown in each section.
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