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.
What is the legal basis?
The scheme rests on two laws:
| Law or notification | What it does |
|---|---|
| Energy Conservation Act, 2001, as amended by the Energy Conservation (Amendment) Act, 2022 | Lets the Central Government specify a carbon credit trading scheme under clause (w) of Section 14 and issue carbon credit certificates (BEE) |
| Carbon Credit Trading Scheme, 2023, S.O. 2825(E), 28 June 2023 | Creates the Indian Carbon Market and its framework (BEE Detailed Procedure for Compliance Mechanism) |
| Amendment to the CCTS, S.O. 5369(E), 19 December 2023 | Adds the offset mechanism for non-obligated entities (PIB, Ministry of Power, 28 March 2025) |
| Environment (Protection) Act, 1986 | Used by the Ministry of Environment, Forest and Climate Change (MoEFCC) to notify the emission intensity targets (BEE) |
| Greenhouse Gases Emission Intensity Target Rules, 2025, and the 2026 notification adding sectors | Set the actual targets for obligated entities (PIB, 22 January 2026) |
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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