Centre Unveils Framework for Carbon Credit Trading Scheme

05 Dec 2025 CW Team

The Government has recently outlined the framework for the Indian Carbon Market under the Carbon Credit Trading Scheme (CCTS), aimed at accelerating decarbonisation across emission-intensive industries. The institutional structure will include a National Steering Committee co-chaired by the Secretaries of the Ministry of Power and the Ministry of Environment, Forest and Climate Change, with Grid India as the Registry and the Bureau of Energy Efficiency (BEE) as the Administrator.

The scheme features two components: a Compliance Mechanism and an Offset Mechanism. Under the Compliance Mechanism, Obligated Entities must meet assigned Greenhouse Gas Emission Intensity targets, with overachieving entities eligible to earn Carbon Credit Certificates. The Offset Mechanism allows Non-Obligated Entities to voluntarily register emission-reduction projects to seek credit issuance.

Sectors shifted from the Perform, Achieve and Trade (PAT) scheme to the new Compliance Mechanism include aluminium, cement, chlor-alkali, petrochemicals, petroleum refineries, pulp and paper, and textiles. Thermal power plants remain under the PAT scheme and are not part of the transition.

This update was provided by Minister of State for Power Shripad Yesso Naik in a written reply to the Lok Sabha.

Infrastructure Urban

05 Dec 2025

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