India Unveils Ambitious Emissions Reduction Plan Through Carbon Credit Trading to Meet Climate Change Objectives

India has made significant progress in reducing its greenhouse gas emissions, with a 33% decrease in emission intensity of its GDP between 2005 and 2019. To further reduce emissions, the government has established the Indian Carbon Market (ICM) through the Energy Conservation Amendment Act, 2022. The Carbon Credit Trading Scheme (CCTS) consists of two mechanisms: the compliance mechanism, which requires entities to reduce their emissions intensity to meet targets, and the offset mechanism, which allows non-obligated entities to register emission reduction projects and earn certificates. The scheme is linked to the Perform Achieve and Trade (PAT) Scheme, which aims to improve energy efficiency in energy-intensive industries. The Bureau of Energy Efficiency (BEE) has developed a Measurement, Reporting, and Verification (MRV) framework to monitor emissions and issue Carbon Credit Certificates. The MRV guidelines were finalized through stakeholder consultations and published in July 2024. The BEE will accredit Carbon Verification Agencies to oversee the verification process. The Carbon Credit Trading Scheme is a crucial step in helping India achieve its national climate targets and encouraging industries to reduce their carbon footprint.