Lok Sabha Question No. 5347 (UNSTARRED), answered on 2025-04-03
Subject: Evolving Carbon Market Framework
Ministry: POWER
Asked by: Shri Jashubhai Bhilubhai Rathva, Shri Damodar Agrawal

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.5347 ANSWERED ON 03.04.2025

## EVOLVING CARBON MARKET FRAMEWORK

5347.  SHRI JASHUBHAI BHILUBHAI RATHVA: SHRI DAMODAR AGRAWAL:

Will the Minister of POWER be pleased to state:

- (a) the  special  measures  being  taken  by  the  Government  to  prevent  fraudulent carbon credit transactions in the emerging carbon market framework in the country;
- (b) whether  the  Government  is  formulating  any  plan  to  balance  economic  growth with the prescribed carbon reduction targets between 2027 and 2030;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) the mechanisms being established by the Government to ensure compliance with carbon reduction targets in the private sector; and
- (e) the  Government's  plan  to  integrate  the  lessons  learned  from  international  best practices discussed in 'Prakriti 2025' into India's climate policy framework?

## A N S W E R

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

- (a) : As  per  Carbon  Credit  Trading  Scheme  (CCTS),  notified  in  June,  2023  (as amended), the Grid Controller of India is the registry for  the Indian carbon market.  In order  to  prevent  fraudulent  carbon  credit  transactions  in  Indian  carbon  market,  the functions  assigned  to  the  registry  for  the  Indian  carbon  market  include  maintaining secure data base and records of all transactions. This registry is also the meta-registry for India.
- (b) & (c) : Currently, the mandatory compliance of greenhouse gas emission intensity (GEI) targets under CCTS covers only few emission intensive industries, designated as 'Obligated Entities'. The greenhouse gas emission intensity (GEI) targets are given to only  those  obligated  entities  whose  annual  energy  consumption  are  above  certain thresholds. Further, while finalizing the GEI targets for different obligated entities, the marginal abatement cost of possible technological measures in the units of obligated entities are taken into consideration to ensure that such entities are given pragmatic and achievable targets.

………..2.

(d) : Bureau of Energy Efficiency (BEE) has published Detailed Procedure for Compliance Mechanism  under CCTS  in July 2024 which covers comprehensive Measurement,  Reporting, and Verification (MRV) framework  to ensure accurate, transparent, and credible compliance. An essential aspect of the MRV framework is the verification process, which requires annual verification of GHG emissions data. Further, the  environmental  compensation  may  be  levied  and  penalty  may  be  imposed  under Environment  Protection  Act  in  case  of  non-compliance  of  GEI  targets  by  obligated entitles.

(e) : An  international  conference  on  carbon  markets  titled  'PRAKRITI'  was  held  in February,  2025  at  New  Delhi  wherein  industries,  financial  institutions  and  other stakeholders participated to deliberate various aspects of carbon market, greenhouse gas (GHG) emission reduction measures, investments in clean technologies for possible adoption of suitable measure by them. Learnings from this conference would enable the obligated entities to opt for the optimum measures to achieve GHG emission reduction targets.  Further,  learnings  from  this  conference  would  also  enable  the  government optimize the policy framework of CCTS.

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