Ministry of Power recently notified carbon credit framework. Photo by: Freepik
The Central Electricity Regulatory Commission (CERC) has notified the 2026 regulations for the trading of Carbon Credit Certificates (CCCs), marking a significant step in operationalising India’s Carbon Credit Trading Scheme (CCTS), 2023. The new rules establish a comprehensive framework for the purchase and sale of carbon credits, aiming to create a transparent, structured, and efficient market mechanism.
Under the regulations, CCCs will be traded primarily through recognised power exchanges, although alternative trading arrangements may be permitted with regulatory approval. The market has been divided into two segments: a compliance market for entities with mandated emission reduction targets, and an offset market for non-obligated participants. This dual structure is intended to ensure targeted participation and improve overall market efficiency.
The Bureau of Energy Efficiency (BEE) has been appointed as the administrator of the scheme, responsible for overseeing operations, developing transaction procedures, and ensuring coordination among stakeholders. The Grid Controller of India will act as the registry, maintaining records related to the issuance, transfer, and holding of carbon credit certificates.
Each CCC represents one tonne of carbon dioxide equivalent (tCO₂e) reduced, avoided, or removed. Prices will be determined by market forces on power exchanges but will operate within a regulatory range defined by floor and forbearance prices set by CERC to limit excessive volatility.
The regulations also require all participants to register before trading and restrict them to trading only the credits available in their registry accounts. Strict penalties have been introduced for non-compliance, including suspension from trading for repeated defaults.
Additionally, the framework provides for monthly trading cycles, transaction reporting, and continuous market monitoring. With these rules in place, India moves closer to implementing a robust carbon market, supporting emissions reduction goals and encouraging investment in low-carbon technologies.
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