Issuing authority: BEE
November 9, 2023
The Bureau of Energy Efficiency (BEE) has released the draft “Detailed Procedure for Compliance Mechanism under the Indian Carbon Market”.
According to the document, India is expected to allocate its emission allowances, called Carbon Credit Certificates or CCCs, based on an intensity-based approach. The government will set annual targets for greenhouse gas or GHG emission intensities, namely the maximum amount of GHG emission allowed per unit of output.
The Carbon Credit Trading Scheme envisages the Compliance Mechanism, whereby the registered entities which are notified under the compliance mechanism are called as ‘Obligated Entity’.
The Ministry of Environment, Forest and Climate Change (MoEFCC) shall notify the GHG Emission intensity targets in terms of tons of carbon dioxide equivalent (tCO2e) per unit of equivalent product for each cycle of defined trajectory for the considered obligated entities. The obligated will be notified an annual target for a three-year trajectory period and on completion of trajectory period, the targets shall be revised.
The Obligated Entity notified in any trajectory period shall comply for each annual year (compliance cycle) with the GHG emission intensity targets assigned to it.
The obligated entity who exceeds the targeted GHG emission intensity in any compliance cycle are entitled for issuance of the Carbon Credit Certificates based on the difference in the achieved GHG emission intensity and targeted GHG emission intensity for the production quantity in the relevant compliance cycle
To establish the GHG emission intensity targets, the technical committee set up by the Bureau shall calculate the GHG emission intensity in the baseline year and the targets of GHG emissions intensity for the trajectory period for each compliance cycle.