The Central Electricity Regulatory Commission (CERC) has notified the draft CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2024.
The objective of these regulations is to create a framework for the exchange of carbon credit certificates (CCCs) for the obligated and the non-obligated entities on power exchanges. As per the draft, the Grid Controller of India will act as the registry for CCC exchanges. The Bureau of Energy Efficiency (BEE) will manage the CCCs under the Energy Conservation Act, working with CERC on transactions, ensuring compliance, and sharing relevant information with stakeholders. The CCCs will be traded monthly on power exchanges, split into compliance and offset markets, with trading limits set by each entity’s CCC holdings to prevent defaults. Further, the prices will be determined through bidding within an approved price range, with CERC and BEE monitoring prices to prevent unusual fluctuations. The BEE will create guidelines for CCC validity, and power exchanges will need CERC’s approval for trading rules. Additionally, CERC may set fees to support registry operations, and both CERC and BEE will oversee CCC trading to ensure it aligns with power market regulations.