Carbon Credit Trading Scheme (CCTS)

The Government have notified the Carbon Credit Trading Scheme (CCTS), 2023 on 28 June 2023 with an objective to reduce or remove or avoid the greenhouse gases emissions from the Indian economy by pricing the greenhouse gases emission through trading of the carbon credit certificates.

The salient features of the CCTS scheme include overarching framework for the functioning of Indian Carbon Market and required details related to the issuance, trading, roles and responsibilities of stakeholders towards operationalization of the scheme.

As notified under the CCTS, the obligated entities shall be issued carbon credit certificates for their achievement in reducing the greenhouse gases emission intensity exceeding the target set for such obligated entities. These certificates will be traded in the trading exchanges, thereby providing them monetary incentives for reducing emissions.

Net Zero Target by 2070

To meet the Net Zero target by 2070, emissions from electricity generation shall be reduced by increasing the contribution of non fossil fuel generation. As per National Electricity Plan (NEP) for 2022-2027 and its perspective plan for 2027-2032, the percentage of year-wise installed capacity and generation from non-fossil fuels is given as under:

Year % of non-fossil fuel installed Capacity % of non-fossil fuel
2021-22 41% 25%
2026-27 57% 39%
2031-32 68% 49%

Promotion of Renewable Energy

To promote the generation of Renewable Energy in the country, Government of India has taken the following steps:

  1. Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
  2. Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of Solar, Wind, Green Hydrogen/Green Ammonia, Pumped Storage Plants & Energy Storage Sources.
  3. Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30.
  4. Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers for installation of RE projects at large scale.
  5. Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 Mega Watt (MW) Central Public Sector Undertaking (CPSU) Scheme Phase II, etc.
  6. Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power.
  7. Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar photovoltaic (PV) and Wind Projects.
  8. Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
  9. Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy Power through exchanges.

Energy Efficiency Measures

Towards improving energy efficiency in various sectors of the Indian economy which would also contribute towards achieving reduction of GHG emissions, the various initiatives undertaken by Bureau of Energy Efficiency are:

I. Domestic Sector

(i) Standards and Labelling (S&L) scheme of Bureau of Energy Efficiency (BEE) prescribes minimum energy performance norms for appliances / equipment. Implementation of the programme has resulted in annual electricity savings of about 70.43 Billion Units in FY 2021-22 and covers 34 appliances.

(ii) Unnat Jyoti by Affordable LEDs for All (UJALA) scheme facilitated faster uptake of LED lamps, through aggregation of demand. Under this programme, 36.86 Crore LED bulbs have been distributed till 12th July 2023.

II. Commercial Sector

i. To promote energy efficiency in commercial buildings sector, the updated Energy Conservation Building Code (ECBC) was launched in 2017. ECBC has been developed by BEE, its enforcement lies with the State Governments and urban local bodies. Till 12th July 2023, 24 States and UTs have notified ECBC for implementation in their respective states.

ii. Under Street Light National Programme (SNLP), about 1.32 crore LED street lights were replaced across India till 12th July 2023 resulting in annual electricity savings of 8.8 Billion Units.

III. Large Industries and Establishments

i. In respect of large energy intensive sectors, Ministry of Power is implementing a flagship program called Perform, Achieve and Trade (PAT). The scheme covers 1333 units from 13 sectors has resulted in annual energy savings of about 25.9 Million Tonnes of Oil Equivalent (MTOE) translating into avoiding of about 109 million tonne of CO2 emissions annually.

IV. Transport Sector

i. In the transport sector, fuel efficiency norms for passenger cars; Heavy Duty Vehicles; and Light & Medium Commercial Vehicles have been notified to reduce carbon footprints.

ii. Government of India has taken several initiatives to promote electric mobility across the country including accelerated deployment of public Electric Vehicle (EV) charging infrastructure in the country.