Carbon Trading
- Carbon trading is a market-based mechanism designed to reduce global greenhouse gas (GHG) emissions by placing a financial value on carbon.
- The fundamental premise is that 1 carbon credit or permit equals 1 metric ton of CO2 (or its equivalent in other GHGs) reduced, avoided, or removed from the atmosphere.
- The Carbon Credits Trading Scheme (CCTS) is a market-based mechanism to reduce greenhouse gas (GHG) emissions by creating a national carbon market.
- It enables industries to trade carbon credits, thereby encouraging cost-effective emission reductions.
- CCTS is notified under Energy Conservation (Amendment) Act, 2022.
- Jointly Implemented By:
- Bureau of Energy Efficiency (BEE) – Ministry of Power
- Ministry of Environment, Forest and Climate Change (MoEFCC)
Source: Down To Earth