BEE has released a detailed procedurefor the Compliance Mechanism of the ICM , aiming to implement the Carbon Credit Trading Scheme, 2023 ("CCTS"). It aims to assist in achieving India's Nationally Determined Contributions ("NDC") targets by pricing Greenhouse Gas ("GHG") emissions through Carbon Credit Certificates ("CCCs"). Obligated entities will be required to achieve GHG emission intensity targets as notified by MoEFCC. If reductions are more than the target levels the entity will earn CCCs and if it fails in achieving targeted reductions, it will be required to either surrender its CCCs or purchase new CCCs. The Central Government, based on recommendations from the National Steering Committee, will identify obligated entities and set out sector-specific GHG emission intensity trajectories in collaboration with BEE. Emissions will be calculated from all energy sources used, monitored within a fixed boundary, and reported to BEE.
Within 4 (four) months after the compliance year ends, each obligated entity will be required to submit a performance assessment document, detailing their adherence to GHG emission intensity targets, to the BEE and State Designated Agency. The entity should also appoint an accredited carbon verification agency to verify this performance according to the defined accreditation criteria and procedures.
CCCs will be issued following verification and committee recommendations. Further, trading of CCCs will require registration of the entities on the ICM Registry as per the Central Electricity Regulatory Commission procedures. Non-obligated entities can also register on ICM to trade CCCs. The CCCs remaining at the end of a compliance year can be banked for future use or sold within the ICM.
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