ndia’s Carbon Credit Trading Scheme (CCTS), launched under the amended Energy Conservation Act, 2001, is a pivotal step toward the country’s commitment to reach net-zero emissions by 2070. This market-based mechanism is designed to incentivize emission reductions through a structured carbon credit system, enabling industries to balance growth with environmental responsibility.
The scheme allows entities that successfully reduce greenhouse gas emissions below assigned thresholds to earn carbon credits. Each credit represents one tonne of CO₂ or equivalent GHG emissions avoided or removed. These credits can then be traded with entities that exceed their emission caps, creating a functional carbon market. The Bureau of Energy Efficiency (BEE) oversees the monitoring, verification, and registry system, ensuring transparency and credibility in the credit lifecycle. The scheme is being rolled out in two phases: an initial voluntary phase and a forthcoming compliance phase, targeting high-emission sectors.
CCTS is set to become a key enabler of sustainable industrial transformation. It provides financial incentives for green innovation, supports ESG compliance, and unlocks new revenue streams for low carbon initiatives.
At Greenloop Cleantech, the focus remains on supporting organizations in leveraging such frameworks to build scalable, future-ready solutions. The Carbon Credit Trading Scheme is not just policy—it is a critical foundation for a resilient, low carbon economy.