India Notifies Detailed Procedure under Carbon Credit Trading Scheme

India’s Bureau of Energy Efficiency (BEE) has notified the “Detailed Procedure for Compliance Mechanism under Carbon Credit Trading Scheme (CCTS)” on July 22, 2024. Since the scheme did not provide any details on how the trading of carbon credits will be conducted when notified in 2023, this latest document hereby specifies the coverage for greenhouse gas (GHG), methodology for calculating GHG reduction target, different responsibilities of obligated entities and more.

There are 9 sectors considered to be included as obligated entities, notably: Aluminium, Chlor Alkali, cement, fertilizer, iron & steel, pulp & paper, petrochemicals, petroleum refinery and textile, while more sectors may be included in the future. Obligated entities will have their own GHG reduction target set based on past data, where they shall implement emission reduction measures or purchase carbon credit certificates to offset their target. However, the effective date of this scheme remains unknown as of August 2024.