CERC proposes framework for carbon credit certificate trading
Author: PPD Team Date: November 19, 2024
The Central Electricity Regulatory Commission (CERC) has issued the draft CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2024.
The regulations aim to establish a structured framework for trading carbon credit certificates (CCCs) on power exchanges, applicable to both obligated and non-obligated entities.
Under the draft, the Grid Controller of India will serve as the registry for CCC exchanges, while the Bureau of Energy Efficiency (BEE) will manage CCCs under the Energy Conservation Act. BEE will collaborate with CERC to oversee transactions, ensure compliance, and share relevant information with stakeholders.
CCC trading will occur monthly, divided into compliance and offset markets. Trading limits will align with each entity’s CCC holdings to prevent defaults, and prices will be set through bidding within an approved range, monitored by CERC and BEE to avoid volatility.
CERC may impose fees to fund registry operations, while power exchanges will require CERC’s approval for trading rules. BEE will issue guidelines on CCC validity, ensuring alignment with power market regulations.
