On 28-6-2023, the Ministry of Power notified the Carbon Credit Trading Scheme, 2023 whereby the governance of Indian Carbon Market and direct oversight of its functioning will be done by the National Steering Committee for Indian Carbon Market.

Key Point:

1. National Steering Committee will recommend the Bureau:

• for formulation and finalization of procedures/ rule/ regulations for institutionalizing/ functions the Indian carbon market;

• for formulation of specific greenhouse gases emission targets for the obligated entities;

• for formulation and finalization of guidelines regarding trading of carbon credit certificates outside India;

• to issue carbon credit certificate;

• to development process or conditions for crediting period or renewal or expiry of carbon credit certificate;

• Monitor the functions of Indian carbon market;

• constituting any Committee or Working group as required in connection with Indian carbon market.

2. The Chairperson will call a meeting once in every quarter of every year.

3. Bureau as administrator will discharge following functions:

• identify sectors and potential for reduction of greenhouse gases emissions;

• develop trajectory and targets for the entities under compliance mechanism;

• issue the carbon credits certificate based on the recommendation;

• develop market stability mechanism for carbon credits;

• develop the procedure for accreditation and functions of accredited carbon verification agency;

• accredit the agencies in accordance with the approved procedure for accredited carbon verification agency;

• develop data submission formats, forms for effective functioning of Indian carbon market;

• undertake capacity building activities for the stakeholders.

4. The Central Electricity Regulatory Committee as Regulator will discharge following functions:

• regulate matters relating to trading of carbon credit certificates;

• safeguard interest of both sellers and buyers;

• regulate frequency of carbon credit certificates trading;

• provide market oversight and take necessary preventive and corrective actions to prevent fraud or mistrust.

5. The Central Government will determine the procedure, eligibility for Accreditation of any agency to function as Accredited Carbon Verification Agency.

6. The compliance mechanism will be decided by the Ministry of Power.

7. The detailed procedure of operationalizing the Indian Carbon Market will be developed by the National Steering Committee which has to contain the following: criteria for issuance/ validity/ floor and forbearance of Carbon Credit Certificates, requirement/ format and timeline for submissions, monitoring/ reporting and verification.