Lok Sabha Question No. 3373 (UNSTARRED), answered on 2026-03-12
Subject: Fraudulent Carbon Credit Transactions
Ministry: POWER
Asked by: Shri Basavaraj Bommai

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO. 3373 ANSWERED ON 12.03.2026

## FRAUDULENT CARBON CREDIT TRANSACTIONS

3373. SHRI BASAVARAJ BOMMAI:

Will the Minister of POWER be pleased to state:

- (a) the  specific  measures  taken/to  be  taken  by  the  Government  to  prevent fraudulent carbon credit transactions in India's evolving carbon market framework;
- (b) the manner in which the Government plans to balance economic growth with carbon reduction targets set for 2027 and 2030;
- (c) the mechanisms to be put in place to ensure private sector compliance with carbon reduction targets; and
- (d) the  manner  in  which  the  Government  plans  to  integrate  learnings  from international best practices discussed at 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) : The  mandatory  compliance  of  greenhouse  gas  emission  intensity  (GEI) targets  under  CCTS  covers  only  emission  intensive  industries,  designated  as '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.

(c) : 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 entities.

(d) : 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,  financing  for  clean technologies  etc.  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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