Lok Sabha Question No. 2021 (UNSTARRED), answered on 2025-07-31
Subject: Guidelines for Operation of Voluntary Carbon Markets
Ministry: POWER
Asked by: Shri B K Parthasarathi, Shri Mohibbullah

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2021 ANSWERED ON 31.07.2025

## GUIDELINES FOR OPERATION OF VOLUNTARY CARBON MARKETS

2021.  SHRI B K PARTHASARATHI: SHRI MOHIBBULLAH:

Will the Minister of POWER be pleased to state:

- (a) whether the Government  has  issued/established any legal framework  or guidelines for the operation of voluntary carbon markets in the country;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has set up a unified set of rules, accounting protocols and  verification  mechanisms  applicable  across  all  sectors  under  the  Indian  Carbon Market framework;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) whether the Government has specified critical components such as the baseline year, emission factors and the types of eligible projects under various sectors for the issuance of carbon credits;
- (f) if so, the details thereof and if not, the reasons therefor;
- (g) whether  the  Government  has  formulated  or  is  considering  any  plans  to  align India's carbon market with international standards or global carbon markets to ensure compatibility and enable cross-border credit transfer or trading; and
- (h) if so, the details thereof and if not, the reasons therefor?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK)

(a) to (d) : The Central Government in consultation with Bureau of Energy Efficiency (BEE)  notified  Carbon  Credit  Trading  Scheme  (CCTS)  which  defines  two  mechanism namely - compliance mechanism and offset mechanism.

Under the compliance mechanism, emission-intensive industries designated as 'Obligated Entities' are required to comply with the assigned Greenhouse Gas Emission Intensity (GEI) targets. Under the offset mechanism, non-obligated entities may register their projects aimed at greenhouse gas emission reduction, removal, or avoidance for the purpose of seeking issuance of Carbon Credit Certificates. The detailed procedures for  both  the  mechanism  have  already  been  published  which  cover  Measurement, Reporting,  and  Verification  (MRV)  framework  to  ensure  accurate,  transparent,  and credible compliance. (e)  &  (f):  The  Government of  India has already specified the  baseline year, emission factors  and  various  sectors  for  the  issuance  of  carbon  credits.  Draft  notifications specifying GEI targets for obligated entities across eight different sectors namely - Pulp &  Paper,  Aluminium,  Cement  and  Chlor-Alkali,  Iron  &  Steel,  Petroleum  Refinery, Petrochemicals  and  Textile  have  been  published.  Further,  eight  methodologies  for different project activities under offset mechanism have also been published. (g) & (h): The aforesaid procedures, published for implementation of CCTS, are in alignment  with  global  standards.  However,  decisions  regarding  the  cross-border transfer  or  trading  of  Carbon  Credit  Certificates  shall  be  taken  by  the  National Designated Authority for Implementation of Article 6 of Paris Agreement (NDAIAPA), as per emerging requirements.

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