Lok Sabha Question No. 25 (UNSTARRED), answered on 2023-07-20
Subject: Indian Carbon Credit Market Scheme
Ministry: POWER
Asked by: Chandra Sekhar Sahu, Pritam Gopinath Munde, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.25 ANSWERED ON 20.07.2023

## INDIAN CARBON CREDIT MARKET SCHEME

25. SHRI CHANDRA SEKHAR SAHU: DR. PRITAM GOPINATHRAO MUNDE: SHRI RAHUL RAMESH SHEWALE:

Will the Minister of POWER be pleased to state:

- (a) whether the Union Government has notified the Indian Carbon Credit Market Scheme recently;
- (b) if so, the objectives and salient features thereof;
- (c) whether  the  Union  Government  proposes  to  constitute  a  National Steering Committee for the Indian Carbon market;
- (d) if so, the details of the intended objectives, its composition and terms and reference thereof;
- (e) whether the Union Government has decided the sectors to be included under  compliance  mechanism  of  the  Indian  Carbon  Market  and  if  so,  the details thereof;
- (f) whether  the  Union  Government  proposes  to  incentivize  entities  with low reduction costs to reduce emissions beyond their mandate and trading in the carbon market;
- (g) if so, the details thereof; and
- (h) the steps taken by the Union Government to achieve the zero carbon emission target by 2070?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

- (a) & (b): The Union Government have notified the Carbon Credit Trading Scheme  (CCTS),  2023  vide  S.O.  2825  (E)  dated  28 th   June  2023  under  the powers conferred by clause (w) of section 14 of the Energy Conservation Act, 2001 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.

- (c) & (d) : The  Central  Government  under  the  clause  (3)  of  the  Carbon Credit Trading Scheme has constituted the National Steering Committee for Indian Carbon Market with the following composition:

| Secretary, MoP                                                                                                                                           | Chairperson    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| Secretary, MoEFCC                                                                                                                                        | Co-Chairperson |
| Joint Secretary or above, MoP                                                                                                                            | Member         |
| Joint Secretary or above, MoEFCC                                                                                                                         | Member         |
| Joint Secretary or above, MNRE                                                                                                                           | Member         |
| Joint Secretary or above, Ministry of Finance                                                                                                            | Member         |
| Joint Secretary or above, NITI Aayog                                                                                                                     | Member         |
| Joint Secretary or above, MoPNG                                                                                                                          | Member         |
| Joint Secretary or above, Ministry of Steel                                                                                                              | Member         |
| Joint Secretary or above, Ministry of Coal                                                                                                               | Member         |
| Joint Secretary or above, MoC&F                                                                                                                          | Member         |
| Joint Secretary or above, MoA& FW                                                                                                                        | Member         |
| Chairperson, CEA                                                                                                                                         | Member         |
| Chairman and Managing Director, GRID - INDIA                                                                                                             | Member         |
| Principal Secretary (2) from the Department of Environment of respective State Government representing the States as nominated by the Central Government | Member         |
| Two expert Members coopted by the National Steering Committee                                                                                            | Member         |
| Any other Members not exceeding three as coopted by the National Steering Committee for Indian carbon market                                             | Member         |
| Director General, Bureau of Energy Efficiency                                                                                                            | Member         |

The terms of reference of the Committee are as follows:

- a. To monitor the functions of Indian Carbon Market
- b. To  recommend  to  the  Bureau  to  formulize  and  finalize  procedures, rules  and  regulations  institutionalizing  the  Indian  carbon  market  and regarding trading of carbon credit certificates outside India;
- c. To recommend to the Bureau to issue carbon credit certificate
- d. To  recommend  to  the  Bureau  for  formulating  specific  greenhouse gases emission targets for the obligated entities
- e. To recommend to the Bureau to constitute any Committee or Working group as required
- f. Any other functions assigned to it by the Central Government

(e) : No, Sir.

(f) & (g) : 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.

(h) : 1. To  meet  the  Net  Zero  target by  2070,  emissions  from electricity generation shall be reduced by increasing the contribution of nonfossil  fuel  generation.  As  per  National  Electricity  Plan  (NEP)  for  2022-2027 and  its  perspective  plan  for  2027-2032,  the  %age  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 generation   |
|---------|-------------------------------------------|-----------------------------------|
| 2021-22 | 41%                                       | 25%                               |
| 2026-27 | 57%                                       | 39%                               |
| 2031-32 | 68%                                       | 49%                               |

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

- (i) Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
- (ii) 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.
- (iii)  Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30.
- (iv)  Setting  up  of  Ultra  Mega  Renewable  Energy  Parks  to  provide  land  and transmission  to  RE  developers  for  installation  of  RE  projects  at  large scale.
- (v) 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.
- (vi) Laying  of  new  transmission  lines  and  creating  new  sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power.
- (vii) Standard  Bidding  Guidelines  for  tariff  based  competitive  bidding process  for  procurement  of  Power  from  Grid  Connected  Solar photovoltaic (PV) and Wind Projects.
- (viii) Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
- (ix) Launch  of  Green  Term  Ahead  Market  (GTAM)  to  facilitate  sale  of Renewable Energy Power through exchanges.
2.  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 under the guidance of Ministry of Power are as follows: 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 12 th  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  12 th   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 12 th  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. Details of the initiatives taken by Ministry of Power are as follows:
- a) Ministry  of  Power  on  13.04.2018  clarified  that  charging  of  EV batteries through public charging stations does not require any license under the provisions of Electricity Act, 2003.
- b) Issue of guidelines and Standards for EV Charging Infrastructure and subsequent amendments with the following salient features:
5.  Support creation  of  EV  Charging  Infrastructure;  with  the  objective  to provide  affordable  tariff  chargeable  from  Public  EV  Charging  Station Operators/Owners and Electric Vehicle (EV) users.
6.  Enable EV owners to charge EVs at their residence/offices using their existing electricity connections.
7.  Introduction of Revenue  Sharing  Model  for provision of land at affordable rates for public charging stations.
8.  Stipulating timelines in accordance with Electricity (Rights of Consumer)  Rules  2020  for  providing  electrical  connectivity  to  public charging stations.
9.  Prescribe single part EV tariff for public charging stations not exceeding Average Cost of Supply (ACoS) till 31.03.2025.
10.  Specify ceiling limits on service charges being levied by public charge point operators on the EV customers to recover the cost of servicing the  capital  investments  (including  GST)  made  by  it  in  setting  up  the Public Charging Stations (PCS).

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