The Central Electricity Regulatory Commission (CERC) has proposed new regulations to govern the purchase and sale of Carbon Credit Certificates (CCCs) in India. These draft regulations are titled Central Electricity Regulatory Commission (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2024. They aim to establish a transparent and well-defined framework for CCC trading on power exchanges.
Key Highlights of the Draft Regulations
The Bureau of Energy Efficiency will categorize CCCs for obligated and non-obligated entities seeking to comply with or offset their carbon footprint. CCCs will be traded on power exchanges, with specific rules for eligibility, price discovery, and registry interaction requiring CERC approval.
Two separate market segments are proposed:
- Compliance Market: For obligated entities to fulfill their carbon emission reduction obligations.
- Offset Market: For non-obligated entities to voluntarily offset their emissions.
The regulations are open to specifying the trading frequency, potentially allowing for monthly trading or a different schedule approved by the CERC.
The CERC is inviting comments, suggestions, and objections from stakeholders and interested parties on the draft regulations. Stakeholders can submit their feedback through various channels:
- Written comments: Mail to the Secretary, CERC, 7th Floor, TowerB, World Trade Centre, Nauroji Nagar, New Delhi 110029.
- Email: Send comments to secy@cercind.gov.in ; rashmi@cercind.gov.in and debashish.roy39@cercind.gov.in.
- SAUDAMINI Portal: Upload comments through the eRegulation link on the e-filing homepage.
The deadline for submitting feedback is December 15, 2024. Comments received after this date may not be considered in the finalization of the regulations.
If implemented, these regulations will create a structured market for carbon credits in India. This market can incentivize emission reduction efforts, promote clean energy adoption, and contribute to India’s climate goals.
