Carbon Credit Trading Scheme, 2023 | Indian carbon market framework | Meta-registry
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- เผยแพร่เมื่อ 16 ก.ค. 2023
- Carbon Credit Trading Scheme, 2023. Energy Conservation Act, 2001 (52 of 2001);
(b) “accredited carbon verification agency”
(c) “carbon credit” means a value assigned to a reduction or removal or avoidance of greenhouse gas emissions achieved and is equivalent to one ton of carbon dioxide equivalent (tCO2e);
(d) “carbon credit certificate”
(e) “carbon credit trading scheme
(g) “compliance mechanism”
(h) “greenhouse gases” means those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation and the expression greenhouse gases include, but not limited to, carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6);
(i) “Indian carbon market framework” means a national framework established with an objective to reduce or remove or avoid the greenhouse gases emissions from the Indian economy by pricing the greenhouse gases emission through trading of the carbon credit certificates;
(j) “meta-registry” means the national greenhouse gas registry that will serve the following purposes, namely:“non-obligated entities” means ‘registered entities’ that can purchase the carbon credit certificates on voluntary basis; (l) “obligated entities” means ‘registered entities’ that are notified under the compliance mechanism; (m) “power exchange” means an electronic trading platform (o) “Registry” Environment Protection Act, 1986 (29 of 1986) and the Electricity Act, 2003 (36 of 2003) shall have the meanings respectively assigned to them in those Acts.
3. National Steering Committee for Indian Carbon Market. -
(1) The Central Government shall constitute the National Steering Committee for Indian carbon market.
(2) The governance of the Indian carbon market and direct oversight of its functioning shall vest in the National Steering Committee for Indian carbon market.
(3) The National Steering Committee for Indian carbon market
4. Functions of National Steering Committee.
6. Registry and its Functions. -(1) The Grid Controller of India Limited shall be the registry for the Indian carbon market. (2) The Registry shall discharge the following functions, in the manner, as may be determined by the Central Government from time to time: - (a) to comply with the directions issued by the Bureau from time to time; (b) to undertake registration of obligated or non-obligated entities; (c) to maintain secure database with all security protocols; (d) to maintain records of all transactions; (e) to share the transaction records with Power Exchange and Bureau; (f) to assist in development of information technology platform for maintaining database of carbon credit certificates; meta-registry for India; (h) to establish linkages with other National or International registries as approved by the Central Government; and (i) any other functions assigned to it by the Bureau. 7. Commission as Regulator for trading activities under Indian Carbon Market. -(1) The Central Electricity Regulatory Commission shall be the regulator for the trading activities under the Indian Carbon Market. (2) The Central Electricity Regulatory Commission as a regulator to Indian Carbon Market shall perform the following, namely: - (a) to regulate matters relating to trading of carbon credit certificates; (b) to safeguard interest of both sellers and buyers; (c) to regulate frequency of carbon credit certificates trading; and (d) to provide market oversight and take necessary preventive and corrective actions to prevent fraud or mistrust. 8. Technical Committee and its Functions. -(1) The Bureau shall constitute, one or more Technical Committees
9. Accredited Carbon Verification Agency.
11. Compliance Mechanism. -(1) The sectors and the obligated entities to be covered under the compliance mechanism shall be decided by the Ministry of Power based on recommendations of the Bureau; (2) The Bureau shall undertake studies for the sectors or obligated entities as decided in sub-paragraph (1) for recommending the targets in terms of ton of carbon dioxide equivalent (tCO2e) per unit of equivalent product (3) The Ministry of Power, after duly considering the recommendations of Bureau and National Steering Committee for Indian carbon market, shall recommend the notification of greenhouse gases emission intensity targets to the Ministry of Environment, Forest and Climate Change for notification under the Environment Protection Act, 1986; 12. Detailed procedure. -(1)The National Steering Committee for Indian carbon market
(i) criteria for issuance of carbon credit certificates; (ii) validity of carbon credit certificates; (iii) floor and forbearance price of carbon credit certificates; (iv) requirement, format and timeline for submissions; (v) monitoring, reporting and verification; and
Sir, It was an extremely thoughtful conversation about what the act seeks to achieve. The cornerstone of the EU's climate policy, carbon trading, uses a "cap and trade" model in which emitters are issued permits and a legal emissions limit (the cap) is set. This system is criticized for not cutting emissions in industrialized nations down far enough, despite its stated goal of doing so. These permits are supplemented with carbon credits that are purchased from sources outside the cap, typically from developing countries. Key features of the plan include its favorable effects on the environment, market-based methodology, encouragement of sustainable behaviors, facilitation of international collaboration, and handling of complex and verification issues. The program's ability to reduce climate change is still up for debate, despite its potential.
It was a highly insightful discussion regarding the objectives of the act. The EU's climate policy, centered on carbon trading, employs a "cap and trade" system. In this model, emitters receive permits and a legal limit on emissions (the cap). Although intended to reduce emissions in industrialized nations, this system has faced criticism for not achieving sufficient reductions. These permits are augmented by carbon credits purchased from sources outside the cap, often in developing countries. The plan's key features include its positive environmental impact, market-based approach, promotion of sustainable practices, support for international cooperation, and management of complex verification issues. However, the program's overall effectiveness in combating climate change remains a subject of debate.
The carbon credit scheme is a market-based approach designed to mitigate the negative impacts of carbon emissions and address climate change. It operates on the principle that industries or entities that emit greenhouse gases can offset their emissions by purchasing carbon credits, which are essentially permits that represent a certain amount of carbon dioxide or equivalent emissions.
Here are some key points of the carbon credit scheme: 1. Positive Environmental Impact 2. Market-Based Approach 3. Incentivizing Sustainable Practices 4. Global Cooperation 5. Complexity and Verification Challenges
It is an important step towards promoting sustainability and combating climate change. The scheme also provides incentives for industries to adopt cleaner technologies and reduce their carbon footprint.
Very helpful video.
Importance of this schemes explained so well.
thankyou sir.
Thanks
Thank you Pooja
Carbon trading is the process of buying and selling permits and credits that allow the permit holder to emit carbon dioxide. It has been a central pillar of the EU’s efforts to slow climate change. The model used in all current carbon trading schemes is called ‘cap and trade’. In a ‘cap and trade’ scheme, a government or intergovernmental body sets an overall legal limit on emissions (the cap) over a specific period of time, and grants a fixed number of permits to those releasing the emissions. Carbon trading is increasingly criticised, not least because carbon dioxide emissions in industrialised countries are not declining at the necessary rate to avert catastrophic climate change.Every current and planned carbon ‘cap and trade’ scheme involves offset credits in one form or another. Credits are a supplementary source of permissions to pollute that can be bought in from countries or industries outside the cap, usually in the developing world.
The carbon credit scheme is an eco-friendly strategy aimed at combating the adverse effects of carbon emissions and tackling climate change. It functions on the idea that businesses or organizations emitting greenhouse gases can counterbalance their emissions by buying carbon credits, which are like licenses signifying a specific quantity of carbon dioxide or equivalent emissions.
Key Aspects of the Carbon Credit Scheme:
1. Beneficial Environmental Consequences
2. Market-Driven Strategy
Informative
Green Credit & Carbon Credit will work together in India 🇮🇳.
RPO ( Renewable Purchase Obligation) / RCO ( Renewable Consumption Obligation) / RGO ( Renewable Generation Obligation)
The carbon credit scheme is an eco-friendly strategy aimed at combating the adverse effects of carbon emissions and tackling climate change. It functions on the idea that businesses or organizations emitting greenhouse gases can counterbalance their emissions by buying carbon credits, which are like licenses signifying a specific quantity of carbon dioxide or equivalent emissions.
Key Aspects of the Carbon Credit Scheme:
1. Beneficial Environmental Consequences
2. Market-Driven Strategy
3. Encouraging Eco-Friendly Practices
4. International Collaboration
5. Issues with Complexity and Verification
The carbon credit scheme is an eco-friendly strategy aimed at combating the adverse effects of carbon emissions and tackling climate change. It functions on the idea that businesses or organizations emitting greenhouse gases can counterbalance their emissions by buying carbon credits, which are like licenses signifying a specific quantity of carbon dioxide or equivalent emissions.
Key Aspects of the Carbon Credit Scheme:
1. Beneficial Environmental Consequences
2. Market-Driven Strategy
The eligible entities in identified sectors should be mandated to meet the prescribed targets. For example, if on average, the steel production currently emits 2.5 tonnes of CO2 equv./ tonne of steel production, and the target works to bring it down to 1.7 tonnes of CO2 equv. by 2030 in a phased manner, each eligible entity producing steel of that specification, will need to follow that phase down
Is there mode of registration for the foreign entities and Indian entities is different for buying the carbon credit
Thank you so much for yhis clarification video sir i was i great doubt regarding this amendment made by government.
I have one doubt can you please tell me how does carbon credit exactly help companies or firms
Following up on this scheme after a few months of it being released, it has seen various changes and the impact of it on carbon trading is such that the carbon credit market has seen increased activity with more businesses participating to meet emission reduction targets. The government is developing a robust regulatory framework for transparency and credibility, leading to higher demand for certified carbon credits, especially in high-emission industries like energy, manufacturing, and transportation. Investments in renewable energy projects and reforestation have surged, supported by public-private collaborations and technological advancements in monitoring and verification. These developments have positioned India as a key player in the global carbon trading market.
Thank you Yashi. This is useful. Can you share Policy / Regulatory documents which BEE or Govt of India 🇮🇳 has released , if any after this Scheme.
This will be super 👌 useful for everyone wishing to understand the Carbon market of 🇮🇳 India.
The Act aims to attain energy efficiency in India. The amendment allows the government to prescribe a minimum share of consumption of non-fossil fuels by authorized customers. It focuses on regulation and security of the carbon credits markets. The amendment has shifted the focus on Carbon credits trading markets and agencies' authorized certification, their obligation to use non-fossil sources in transportation and commercial sectors and penalty if the policy is not followed. Moreover, an Energy Conservation Code is established for buildings of office or residential purposes. Along with that, a code of vehicles and marine vessels is formed to enforce energy efficiency.
I am tie up carbon credit policy
Excellent 👌 Business 👩💼. Keep it up.
It is a very commendable effort , hats off and I think more is to come 🙏
Dear Pankaj ji
happy to note that you liked it. We have 9 videos on Carbon Market and will be glad to get your feedback. Regards
Raj Singh Niranjan
How the carbon credit is calculated
That’s A wonderful question. Would you like us to invite an expert for podcast who can share valuable insights about the same.
How to become a carbon auditor in India?
Wonderful question. 🙋♀️.
Can any Subscriber/ Member share inputs on the question asked by Anmol ji
कार्बन क्रेडिट ट्रेडिंग योजना के संबंध में जानकारी के लिए धन्यवाद
That was a vey intellectual discussion I would like to provide some pointers to this explanation which are as follows:
1. Obligated Entities: The scheme identifies certain industries, such as power generation, cement, steel, and aluminum, as obligated entities. These entities will be required to submit emission reduction targets and purchase carbon credits if they fail to meet their targets.
2. Carbon Credits: Each tonne of carbon dioxide equivalent (tCO2e) of emissions reduced or avoided will be represented by a carbon credit. These credits can be traded on a designated carbon exchange.
3. Compliance Mechanism: The scheme establishes a compliance mechanism to ensure that obligated entities meet their emission reduction targets. This mechanism includes monitoring, reporting, and verification (MRV) procedures.