The MoP has notified the Carbon Credit Trading Scheme, 2023 (‘Scheme’) on June 28, 2023 (‘CCTS Notification’). The CCTS Notification sets out the roles and functions of various entities which will be involved in setting up and regulating an Indian carbon credit market framework. The CCTS Notification provides for the constitution of a National Steering Committee which will be responsible for the overall governance and oversight of the Indian carbon credit market and providing recommendations to the other entities involved. The Bureau of Energy Efficiency will be the administering authority for the Indian carbon market.

The CCTS Notification authorizes the MoP to determine the sectors and entities that will be covered under the greenhouse emission norms, while the emission targets for the selected entities and sectors will be notified by the Ministry of Environment, Forest, and Climate Change under the Environment (Protection) Act, 1986. Industries/ establishments whose emissions are below such targets will be issued carbon credit certificates, and those industries/ establishments which emit beyond the target set for them could purchase such certificates on power exchanges. The regulations in relation to such trade of certificates are to be prescribed by the Central Electricity Regulatory Commission.