Lok Sabha Question No. 336 (UNSTARRED), answered on 2026-02-02
Subject: National Designated Authority for Carbon Credit Market
Ministry: ENVIRONMENT, FOREST AND CLIMATE CHANGE
Asked by: Shri Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE

## LOK SABHA UNSTARRED QUESTION NO. 336

TO BE ANSWERED ON 02.02.2026

## National Designated Authority for Carbon Credit Market

## 336.     SHRI DUSHYANT SINGH:

Will the Minister of ENVIRONMENT, FOREST AND CLIMATE CHANGE be pleased to state:

- (a) whether the Government has envisaged any specific timeline to operationalise India's first Carbon Market, if so, the details thereof including the expected impact on emission reduction;
- (b) the details of the sectors proposed to be brought under the aforesaid mechanism and the manner in which their inclusion is being prioritised;
- (c) whether the Government has recently reconstituted the National Designated Authority (NDA) in pursuance of the launch of India's first carbon market; and
- (d) if so, the details thereof including its expanded composition and the manner in which this reconstitution is expected  to strengthen India's position in global climate negotiations, particularly in view of India's proposal to host 33rd Conference of Parties of United Nations Framework Convention on Climate Change (CoP-33) in 2028?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE (SHRI KIRTI VARDHAN SINGH)

(a)  &  (b):  The  'National  Framework  for  Indian  Carbon  Market  (ICM)  i.e.  Carbon  Credit Trading Scheme (CCTS) was notified vide S.O. 2825 (E) dated 28th June 2023 and amendment notification S.O. 5369(E), dated 19th December 2023 under the powers conferred by clause (w) of section 14 of the Energy Conservation (Amendment) Act, 2022.

The scheme defines two mechanisms, namely, compliance mechanism and offset mechanism.

In the compliance mechanism, the obligated entities shall comply with the prescribed Green House  Gas  emission  reduction  norms  in  each  compliance  cycle  of  Carbon  Credit  Trading Scheme (CCTS). Under this mechanism, the Greenhouse Gas Emission Intensity Reduction (GEI) Targets for  seven sectors -  Aluminum,  Cement,  Chlor-Alkali, Pulp &  Paper, Petrochemicals,  Petroleum  refinery  and  textiles  covering  490  obligated  entities  have  been notified by the Central Government for the compliance years 2025-26 and 2026-27, using fiscal year 2023-24 as the baseline.

In the offset mechanism, the non-obligated entities can register their projects for Green House Gas emission  reduction  or  removal  or  avoidance for  issuance  of  Carbon  Credit  Certificate (CCCs).  Under  this  mechanism,  the  government  has  approved  ten  sectors,  which  include Energy,  Industries, Agriculture,  Waste  handling  and  disposal,  Forestry,  Transport,  Fugitive Emissions,  Construction,  Solvent  use  and  Carbon  capture  and  storage  of  CO2  and  other removals.

(c)  &  (d)    The  Government  has  also  notified  the  National  Designated  Authority  for  the Implementation of Article 6 of the Paris Agreement (NDAIAPA), vide S.O.2504 (E), dated 30th May, 2022 and subsequent amendment (vide G.S.R. 569 (E)) dated 22nd Aug 2025, to ensure  effective  operationalization  of  Article  6  mechanisms  of  the  Paris  Agreement.  The Authority has updated and finalized the list of 13 activities under Green House Gas (GHG) mitigation,  alternate  materials,  and  removal  activities,  which  are  eligible  for  trading  of international  carbon  credits  under  bilateral/  cooperative  approaches,  under Article  6.2  and Article 6.4 of the Paris Agreement.

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