Carbon Credit Trading Scheme Likely Mandatory for Steel Sector
Why in the news
The Government of India was reported to be preparing to bring steel makers under compulsory participation in the CCTS, a push to lower emissions and encourage cleaner technology.
Key facts
- Scheme: CCTS, creating a domestic carbon market.
- Legal foundation: Energy Conservation (Amendment) Act, 2022.
- Framework notified: 2023.
- Regulator for targets and compliance: Bureau of Energy Efficiency (BEE).
How carbon credit trading works
| Company position | What happens |
|---|---|
| Emits below its allowance | Can sell its spare credits |
| Emits above its allowance | Has to buy credits |
Significance
- Supports lower emissions intensity of GDP and the net-zero by 2070 goal.
- Brings India in line with global carbon market practice.
Exam angle
- Nodal body: BEE.
- Parent law: Energy Conservation (Amendment) Act, 2022.
- Net-zero target year: 2070.