CARBON CREDIT TRADING
SCHEME (CCTS)

WHAT IS CARBON CREDIT TRADING SCHEME (CCTS) ?

Carbon Credit Trading Scheme (CCTS) is a market-based mechanism aimed at decarbonizing the Indian economy by pricing greenhouse gas (GHG) emissions and facilitating the trading of carbon credits. The scheme is part of the broader Indian Carbon Market (ICM) initiative, which aligns with India’s climate goals, including the target of reducing emissions.

Compliance Mechanism: It Obligates energy-intensive industries (e.g., iron & steel, cement, fertilizers, aluminium, petroleum refineries, pulp & paper, textiles) to meet sector-specific GHG emission intensity targets. Entities exceeding targets receive Carbon Credit Certificates (CCC), each representing a reduction of one tonne of CO2 equivalent (tCO2e). Those failing to meet targets must purchase credits to cover their shortfall.

Offset (Voluntary) Mechanism: It Allows entities outside the compliance framework to voluntarily participate and earn carbon credits by reducing emissions.

• Carbon Credit Certificates are issued via the ICM Registry and traded on an electronic platform.
• Methodologies for monitoring, reporting, and verification (MRV) are being developed to ensure transparency and integrity.
• The Carbon Credit Trading Scheme (CCTS) is India’s market-based mechanism to regulate and trade carbon credits under the Indian Carbon Market (ICM), aiming to decarbonize the economy by pricing greenhouse gas (GHG) emissions and facilitating carbon trading.