Notification/Circular No.: RA-14026(13)/1/2024-CERC dated February 27, 2026
Applicable Act/Rule: Electricity Act, 2003; Carbon Credit Trading Scheme, 2023
The notification issues regulations governing the purchase and sale of Carbon Credit Certificates (CCCs) under the framework of the Carbon Credit Trading Scheme, 2023, notified by the Ministry of Power.
The regulations prescribe the framework for exchange of CCCs between obligated and non-obligated entities through power exchanges or any other mode permitted by the Commission. The scope applies to CCC transactions carried out on power exchanges in accordance with the Power Market Regulations. The Grid Controller of India is designated as the Registry for exchange of CCCs. The Bureau of Energy Efficiency acts as the Administrator responsible for formulation of procedures, registration, monitoring, and coordination functions related to CCC transactions.
The regulations define the value and validity of CCCs in accordance with the Carbon Credit Trading Scheme, 2023 and prescribe categorisation of certificates by the Bureau. Transactions in CCCs are to be conducted through power exchanges unless otherwise permitted. Separate market segments are specified for obligated entities (compliance market) and non-obligated entities (offset market). Monthly transaction frequency is prescribed unless otherwise approved. Provisions relating to bidding limits, default conditions, reporting obligations, and registry verification mechanisms are specified.
Pricing provisions include denomination of CCCs equivalent to one tonne of carbon dioxide equivalent (tCO2e), market-based price discovery, and trading within floor and forbearance price ranges as approved by the Commission. The regulations also provide for banking and surrender of CCCs as per detailed procedures under the scheme.
Further provisions cover fees and charges payable to the Registry, market oversight by the Commission with assistance from the Bureau, and powers of the Commission to relax provisions or issue directions where required.
“(1) These regulations may be called the Central Electricity Regulatory Commission (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026.
(2) These regulations shall come into force from the date of their publication in the Official Gazette.”
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