Power ministry seeks feedback on carbon trading scheme

The Energy Conservation (Amendment) Bill 2022 was passed in the Rajya Sabha in December last year. Within the same, the ministry of power is in the process to finalize the Carbon Credit Trading Scheme (CCTS), and is seeking feedback on the scheme draft.

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New Delhi, March 27: The ministry of power has issued a draft namely “Carbon Credit Trading Scheme” on Monday, seeking feedback from concerned stakeholders. The objective of the draft is to set up a framework for Indian carbon market.

As per the memorandum issues by the ministry of power, comments on the draft scheme should be submitted to the government by April 14, 2023. Indian Parliament has passed the proposed Energy
Conservation (Amendment) Bill, 2022 and notification for the same was issues in December last year.

One of the provisions of this amendment includes empowering Central Government to “Specify Carbon Trading Scheme”, in consultation with Bureau of Energy Efficiency (BEE). The ministry is in the process to finalize the Carbon Credit Trading Scheme (CCTS).

The draft clarifies that an ‘Accredited Carbon Verifier’ would mean an agency accredited by the Bureau (Bureau of Energy Efficiency) to carry out validation or verification activities in respect of the CCTS. Carbon credit trading aims to reduce carbon emissions, and hence, address climate change.

The ‘Carbon Credit Certificate’ (CCC), as mentioned in the scheme, means the certificate issued to the registered entity by the central government, or any agency authorised by it, in the CCTS where each certificate issued shall represent reduction or removal of one tonne of CO2 equivalent (tCO2e).

The scheme provides for setting up of the Indian Carbon Market Governing Board (ICMGB). The governance of the Indian Carbon Market (ICM) and direct oversight of its administrative and regulatory functioning shall vest in the governing board, to be called as ICMGB.

It will also involve for setting up of the Indian Carbon Market Governing Board (ICMGB). The governance of the Indian Carbon Market (ICM) and direct oversight of its administrative and
regulatory functioning shall vest in the governing board will be called as ICMGB.

The ICMGB will be power and environment secretaries would be the ex-officio co-chairmen of ICMGB. The ICMGB shall meet at least once in a quarter of every year, or as may be required. It will recommend procedures for institutionalising the Indian carbon market for the approval of
the central government.