Source: Times of India
Context
The United Kingdom officially recognised India’s Carbon Credit Trading Scheme (CCTS) as a qualifying carbon pricing framework under its Carbon Border Adjustment Mechanism (CBAM) — reducing the effective CBAM liability on Indian exports.
What CCTS Is
- A national market-based mechanism establishing the Indian Carbon Market (ICM)
- Prices greenhouse gas emissions, issues tradable Carbon Credit Certificates (CCCs), and drives industrial decarbonisation
- Notified June 2023 under the Energy Conservation (Amendment) Act, 2022
- Detailed compliance regulations adopted July 2024
Aim
- Accelerate decarbonisation of the Indian economy
- Fulfil India’s Nationally Determined Contributions under the Paris Agreement
- Incentivise emission cuts in energy-intensive sectors through a transparent carbon-trading exchange
