Lok Sabha Question No. 2401 (UNSTARRED), answered on 2025-03-13
Subject: National Framework for Indian Carbon Market
Ministry: POWER
Asked by: Ms Iqra Choudhary

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2401 ANSWERED ON 13.03.2025

## NATIONAL FRAMEWORK FOR INDIAN CARBON MARKET

2401. MS IQRA CHOUDHARY:

Will the Minister of POWER be pleased to state:

- (a) the  specific  timeline  set  to  introduce  the  'National  Framework  for  Indian  Carbon Market' (ICM) and the steps taken by the Government to ensure that there are no delays in its rollout;
- (b) the  details  of  the  sectors  to  be  considered  under  the  scheme  and  the  number  of sectors be covered in different phases of the scheme;
- (c) the number of entities being covered under the scheme, State-wise; and
- (d) the  manner  in  which  the  framework  incentivize  participation  from  high-emission sectors and the mechanism being developed to ensure compliance without disproportionately burdening on small and medium enterprises?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

- (a) : Carbon Credit  Trading  Scheme  (CCTS),  which  provides  framework  for  Indian  Carbon Market, has already been notified in June, 2023 and amended in December, 2023 under the Energy  Conservation  Act,  2001(as  amended).    CCTS  provides  two  mechanisms  namely, compliance  mechanism  and  offset  mechanism.  The  accreditation  procedure  and  eligibility criteria  for  Accredited  Carbon  Verification  Agencies  have  already  been  published.  Detailed procedure  for  compliance  mechanism  has  also  been  published.  Detailed  procedures  and methodologies  under  the  Offset  Mechanism  are  currently  being  developed.  The  trading  of carbon credits under compliance mechanism is expected to begin in 2026-27.
- (b) : The  compliance  mechanism  presently  covers  Aluminium,  Cement,  Chlor  -  Alkali, Fertilizer, Iron & Steel, Petrochemical, Petroleum Refinery, Pulp & Paper and Textile sector. Approved sectors under offset mechanism are Energy, Industries, Agriculture, Waste handling and  disposal,  Forestry,  Transport,  Fugitive  Emissions,  Construction,  Solvent  use,  Carbon capture, utilization and storage of CO2 and other removals.
- (c) : Approximately  795  obligated  entities  have  been  estimated  to  be  covered  under  the compliance mechanism of CCTS. State wise details are as follows:

| State          |   Obligated Entities |
|----------------|----------------------|
| Andhra Pradesh |                   41 |
| Assam          |                    8 |
| Bihar          |                    5 |
| Chhattisgarh   |                   76 |
| Goa            |                    5 |

| Gujarat                       |   101 |
|-------------------------------|-------|
| Haryana                       |    12 |
| Himachal Pradesh              |    14 |
| Jammu Kashmir                 |     1 |
| Jharkhand                     |    25 |
| Karnataka                     |    55 |
| Kerala                        |     4 |
| Madhya Pradesh                |    33 |
| Maharashtra                   |    48 |
| Meghalaya                     |    10 |
| Odisha                        |    83 |
| Punjab                        |    28 |
| Rajasthan                     |    70 |
| Tamil Nadu                    |    49 |
| Telangana                     |    26 |
| Union territory of Puducherry |     2 |
| Uttar Pradesh                 |    45 |
| Uttarakhand                   |     7 |
| West Bengal                   |    47 |
| Grand Total                   |   795 |

(d) : Under the compliance mechanism, the greenhouse gas emission intensity (GEI) targets are  given  to  only  those  obligated  entities  whose  annual  energy  consumption  are  above certain  thresholds.  The  present  energy  consumption  thresholds  for  different  sectors  under compliance mechanism are as below:

|   Sl. No. | Sector               |   Threshold Limit (tonnes of oil equivalent) |
|-----------|----------------------|----------------------------------------------|
|       1   | Aluminium            |                                         7500 |
|       2.1 | Cement ( Integrated) |                                        30000 |
|       2.2 | Cement (Grinding)    |                                        10000 |
|       3   | Chlor - Alkali       |                                         7500 |
|       4   | Fertilizer           |                                        30000 |
|       5   | Iron & Steel         |                                        20000 |
|       6   | Petrochemical        |                                       100000 |
|       7   | Petroleum Refinery   |                                        90000 |
|       8   | Pulp & Paper         |                                         7500 |
|       9   | Textile              |                                         3000 |

Further,  while  finalizing  the  GEI  targets  for  different  obligated  entities,  the  marginal abatement cost of possible  technological  measures  in  the  facility  of  obligated  entities  are taken into consideration to ensure that such entities are given achievable targets.

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