PNS|Vijayawada
The launch of the Carbon Credit Trading Scheme has been hailed as a significant step towards combating greenhouse gas emissions and addressing climate change in India, as stated by the Union Ministry of Power-led Bureau of Energy Efficiency (BEE). The ministry is urging all stakeholders to actively participate and provide support to ensure the successful implementation of the scheme.
Abhay Bakre, DG of BEE, has appealed to proactive states such as Andhra Pradesh, Telangana, Karnataka, Kerala, Rajasthan, Gujarat, Assam, Chandigarh, Haryana, Maharashtra, Punjab, and more to play a crucial role in ensuring the scheme’s success. Recognising that active participation from these states will foster industrialisation, create employment opportunities, and accelerate economic development, the BEE emphasised the potential of the carbon credit trading scheme to pave the way for a greener and more sustainable future while effectively addressing the pressing global challenge of climate change.
The Central Government has established the National Steering Committee, headed by the Secretary of the Ministry of Power, to oversee the Indian Carbon Market. This committee consists of representatives from various government ministries, emissions and climate change experts, as well as members of the energy sector. Its primary responsibility is to govern and supervise the functioning of the carbon market.
The Bureau of Energy Efficiency (BEE) has been designated as the administrator for the Indian carbon market. Its key roles include identifying sectors with significant potential for emission reductions, setting targets for obligated entities under the compliance mechanism, and issuing carbon credit certificates based on recommendations from the National Steering Committee. The BEE will also establish market stability mechanisms, accredit carbon verification agencies, and maintain the necessary IT infrastructure and database to ensure seamless functioning of the market.
Under the scheme’s compliance mechanism, obligated entities in sectors determined by the Ministry of Power will be covered. These entities will be required to achieve greenhouse gas emission intensity targets, and those surpassing their targets will be eligible to receive carbon credit certificates. In the event that obligated entities are unable to meet their targets, they will be required to purchase carbon credit certificates from the Indian carbon market.
