The scheme aims to reduce emissions through market-based mechanisms. • It helps India meet its emission reduction commitments while creating economic opportunities and promoting sustainable development. • BEE has been designated as the administrator for the Indian carbon market. • The introduction of the Carbon Credit Trading Scheme signifies a crucial step towards mitigating climate change, says Abhay bakre, DG, BEE •
BEE appeals to all proactive states like Andhra Pradesh, Gujarat, Telangana, etc., to actively participate and play a significant role in making the scheme successful. • Government bodies, industry players, environmental organizations, and individuals are urged to wholeheartedly support the successful implementation of the scheme.
The DG BEE has expressed his gratitude to Union Power Minister R K Singh and Secretary power, Pankaj agarwal for their Unstinted support & guidance for effective implementation of various energy efficiency schemes across the country.
Stating the launch of the Carbon Credit Trading Scheme as a significant step towards addressing greenhouse gas emissions and mitigating climate change in India, the Union Ministry of Power-led Bureau of Energy Efficiency (BEE) has appealed to all stakeholders to actively participate and provide unwavering support for the successful implementation of the scheme. Established under the Energy Conservation Act, 2001, this scheme will facilitate the trading of carbon credits, incentivizing and rewarding entities that reduce, remove, or avoid greenhouse gas emissions. Its implementation, which came into force on June 28, 2023, upon publication in the Official Gazette, underscores the urgent need to combat climate change and recognizes the pivotal role of marketbased mechanisms in achieving emission reduction targets. The carbon credit trading scheme assigns a value, known as a carbon credit, to each ton of carbon dioxide equivalent (tCO2e) reduced or avoided.
These credits can be bought, sold, and traded within the Indian carbon market framework. The Director general of BEE emphasized that the introduction of the Carbon Credit Trading Scheme which is historic and flagship program of Govt of India signifies a critical step towards mitigating climate change. By incentivizing emission reduction efforts and establishing a market for carbon credits, the scheme encourages active participation from entities across various sectors in greenhouse gas reduction activities. He remarked, "This initiative will not only help India meet its emission reduction commitments but also create tremendous economic opportunities and promote sustainable development." Furthermore, the BEE has appealed to proactive states like Andhra Pradesh, Telangana, Karnataka, Kerala, Rajasthan, Gujarat, Assam, Chandigarh, Haryana, Maharashtra, Punjab etc.. to play a pivotal role in ensuring the success of the scheme.
Recognizing that such active participation would foster industrialization, create employment opportunities, and accelerate economic development, the BEE stated, "By embracing the carbon credit trading scheme, India can pave the way for a greener and more sustainable future while effectively addressing the pressing global challenge of climate change." According to the BEE, the Central Government has constituted the National Steering Committee headed by Secretary , ministry of power for the Indian Carbon Market. This committee comprises representatives from various government ministries, emissions and climate change experts, and members of the energy sector. It will oversee and govern the functioning of the carbon market.
Designated as the administrator for the Indian carbon market, the Bureau of Energy Efficiency (BEE) will identify sectors with significant potential for emission reductions, develop targets for obligated entities under the compliance mechanism, and issue carbon credit certificates based on recommendations from the National Steering Committee. Additionally, the BEE will establish market stability mechanisms, accredit carbon verification agencies, and maintain the necessary IT infrastructure and database essential for the market's seamless functioning. The compliance mechanism under the scheme will cover obligated entities in sectors as determined by the Ministry of Power. These entities will be required to achieve greenhouse gas emission intensity targets, and those exceeding their targets will receive carbon credit certificates. In case obligated entities are unable to meet their targets, they must purchase carbon credit certificates from the Indian carbon market.
The BEE earnestly urges all stakeholders, including government bodies, industry players, environmental organizations, and individuals, to actively participate in and wholeheartedly support the successful implementation of the scheme. The DG BEE who has reviewed on the future course of action of the prestigious program of Carbon Credit Trading Scheme (CCTS) with Dy. Director general Ashok Kumar, Secretary, BEE Milind Deora, Directors of BEE Saurabh didi, Sunil khandari, Arijit Singh Gupta, Vinita Kanwal, p samala, Verma, Sameer pandita, Joint director Ahishek Sharma has participated
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