{"id":371317,"date":"2026-09-08T17:08:14","date_gmt":"2026-09-08T11:38:14","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=371317"},"modified":"2026-09-08T17:08:14","modified_gmt":"2026-09-08T11:38:14","slug":"carbon-credit-trading-scheme-ccts","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/carbon-credit-trading-scheme-ccts\/","title":{"rendered":"Carbon Credit Trading Scheme (CCTS)"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><strong>News:<\/strong> The U.K. has recognised India\u2019s CCTS for carbon pricing relief under its Carbon Border Adjustment Mechanism (CBAM).<\/p>\n<\/div>\n<h2 class=\"red-h2-box\">About Carbon Credit Trading Scheme (CCTS)<\/h2>\n<figure id=\"attachment_371320\" aria-describedby=\"caption-attachment-371320\" style=\"width: 252px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-371320\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/09\/Source-PIB.jpg?resize=252%2C300&#038;ssl=1\" alt=\"Carbon Credit Trading Scheme (CCTS)\" width=\"252\" height=\"300\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/09\/Source-PIB.jpg?resize=252%2C300&amp;ssl=1 252w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/09\/Source-PIB.jpg?w=571&amp;ssl=1 571w\" sizes=\"auto, (max-width: 252px) 100vw, 252px\" \/><figcaption id=\"caption-attachment-371320\" class=\"wp-caption-text\">Source &#8211; PIB<\/figcaption><\/figure>\n<ul>\n<li><strong>Carbon Credit Trading Scheme (CCTS)<\/strong>\u00a0is a mechanism <strong>designed to reduce GHG emissions through carbon pricing.<\/strong>\n<ul>\n<li>It laid the <strong>foundation for the Indian Carbon Market (ICM)<\/strong> by establishing its institutional framework.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Legal Basis:<\/strong> It was <strong>notified by the Ministry of Power in 2023<\/strong> under the <strong>Energy Conservation Act, 2001.<\/strong><\/li>\n<li><strong>Predecessor:<\/strong> <strong>CCTS supersedes the Perform, Achieve and Trade (PAT) scheme,<\/strong> which focused on <strong>energy efficiency through Energy Saving Certificates (ESCerts).<\/strong><\/li>\n<li><strong>Objective:<\/strong> It aims to <strong>decarbonize industrial sectors<\/strong> by <strong>shifting the focus from energy efficiency to GHG emissions intensity reduction.<\/strong><\/li>\n<li><strong>Institutional Structure<\/strong>\n<ul>\n<li><strong>Administrator:<\/strong> The <strong>Bureau of Energy Efficiency (BEE<\/strong>) <strong>sets targets<\/strong> and <strong>issues Carbon Credit Certificates (CCCs).<\/strong><\/li>\n<li><strong>Regulator:<\/strong> The <strong>Central Electricity Regulatory Commission (CERC)<\/strong> regulates <strong>CCC trading.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Operational Mechanism:<\/strong>\n<ul>\n<li><strong>Coverage:<\/strong> The CCTS compliance mechanism initially <strong>covers nine energy-intensive sectors &#8211;<\/strong> alluminium, cement, chlor-alkali, pulp and paper, iron and steel, fertilizer, petroleum refining, petrochemicals, and textiles.<\/li>\n<li><strong>Setting Targets:<\/strong> Obligated entities in <strong>these sectors are given sector-specific GHG emission intensity targets.<\/strong><\/li>\n<li><strong>Measuring Performance:<\/strong> Their <strong>performance is assessed<\/strong> against the prescribed emission intensity targets.<\/li>\n<li><strong>Earning Credits:<\/strong> An <strong>entity that performs better than its target earns Carbon Credit Certificates (CCCs),<\/strong> with 1 CCC representing 1 tonne of CO\u2082 equivalent reduced.<\/li>\n<li><strong>Buying Credits:<\/strong> An <strong>entity that fails to meet its target must purchase CCCs<\/strong> to meet its compliance requirement.<\/li>\n<li><strong>Trading Credits:<\/strong> <strong>Earned CCCs can be traded on power exchanges<\/strong>, allowing entities that need credits to purchase them.<\/li>\n<li><strong>Voluntary Participation:<\/strong> <strong>Entities outside the compliance mechanism can voluntarily reduce their emissions<\/strong> and <strong>earn carbon credits through the offset mechanism.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>CCTS Emission Accounting:<\/strong>\n<ul>\n<li><strong>Intensity-Based Targets:<\/strong> CCTS sets <strong>targets in tonnes of CO\u2082 equivalent per unit of product output.<\/strong><\/li>\n<li><strong>Scope of Emissions:<\/strong> It covers <strong>direct emissions from fuel combustion<\/strong> and <strong>industrial processes (Scope 1)<\/strong> and <strong>indirect emissions from electricity and heat consumption (Scope 2)<\/strong>.<\/li>\n<li><strong>Additional Emissions:<\/strong> Some <strong>Scope 3 emissions,<\/strong> including <strong>emissions from the import and export of intermediary products<\/strong>, are also considered.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The U.K. has recognised India\u2019s CCTS for carbon pricing relief under its Carbon Border Adjustment Mechanism (CBAM). About Carbon Credit Trading Scheme (CCTS) Carbon Credit Trading Scheme (CCTS)\u00a0is a mechanism designed to reduce GHG emissions through carbon pricing. It laid the foundation for the Indian Carbon Market (ICM) by establishing its institutional framework. Legal&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/carbon-credit-trading-scheme-ccts\/\">Continue reading <span class=\"screen-reader-text\">Carbon Credit Trading Scheme (CCTS)<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,4182,956,12039],"tags":[11872],"class_list":["post-371317","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-environment","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/371317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=371317"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/371317\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=371317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=371317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=371317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}