The Central Electricity Regulatory Commission (CERC) has notified the CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026. The regulations propose a framework for the purchase and sale of carbon credit certificates (CCCs) under the Carbon Credit Trading Scheme (CCTS), 2023. The regulations will be applicable to CCCs that are offered for transactions on power exchanges or through any other modes permitted by the CERC under the CCTS. Furthermore, these transactions will be conducted in accordance with the Power Market Regulations.
The regulations establish a compliance market for obligated entities and an offset market for non-obligated entities. Transactions are proposed to take place every month or at any other interval as may be specified under procedures approved by the CERC.
Furthermore, the Grid Controller of India has been designated as the registry for the exchange of CCCs. It is required to develop and establish the necessary framework for this role in line with the CCTS. The Bureau of Energy Efficiency (BEE) will serve as the Administrator for CCCs issued under the Energy Conservation Act of 2001. Additionally, CERC, with the assistance of the BEE, will oversee the market for CCC trading. This oversight will cover transactions conducted on power exchanges or other permitted entities in line with the Power Market Regulations.
The banking and surrender of CCCs will be regulated in accordance with the detailed procedures laid down for the compliance and offset mechanisms under the CCTS. The value and validity of CCCs will be determined as per the provisions of the CCTS and the associated detailed procedures.
