1. What is the Carbon Credit Trading Scheme, 2023?
The Carbon Credit Trading Scheme, 2023, is a new initiative by the Ministry of Power to regulate and incentivize the reduction of greenhouse gas emissions in India. It involves the issuance and trading of carbon credits to meet emission targets.
2. Who issues the carbon credit certificates?
The carbon credit certificates will be issued by the Bureau of Energy Efficiency (BEE) to entities that surpass their assigned emission reduction targets.
3. How are the obligated entities for the scheme determined?
The Ministry of Power, based on recommendations from the Bureau of Energy Efficiency, notifies entities obligated to comply with the trading scheme.
4. Who sets the emission intensity targets for these entities?
The Ministry of Environment, Forest, and Climate Change sets the emission intensity targets for obligated entities, upon the recommendation of the Ministry of Power.
5. What happens if an entity does not meet its emission targets?
Entities that fail to meet their targets must compensate by purchasing carbon credit certificates.
6. Where will carbon credit certificates be traded?
These certificates will be traded on power exchanges registered with the Central Electricity Regulatory Commission (CERC).
7. What is the role of the Grid Controller of India Limited (GCIL) in this scheme?
GCIL acts as the registry for the scheme, undertaking the registration of entities and maintaining a record of transactions.
8. Who oversees the governance of the carbon market?
A National Steering Committee, chaired by the Power Secretary and comprising representatives from various ministries, oversees the governance and oversight of the carbon market.
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