Why is it in the news?
→ India transitioned to a market-based national carbon trading mechanism to price GHG emissions.
→ Supports emission-intensity reduction target of 45% by 2030.
Category
Environment
Important Points
- CCTS replaces PAT scheme’s energy-efficiency focus with GHG emission pricing.
- Issues Carbon Credit Certificates (CCC), each equal to 1 tonne CO₂ equivalent.
- Operates via Compliance and Offset mechanisms.
- Compliance targets energy-intensive sectors (iron & steel, aluminium, cement, fertilisers).
- Offset mechanism allows voluntary participation outside compliance sectors.
- Initial coverage accounts for ~16% of India’s total emissions; power sector (~40%) may be added later.
- Regulated by Bureau of Energy Efficiency and National Steering Committee for Indian Carbon Market.
- Designed to attract private investment in clean technologies, renewables and carbon capture.