The power ministry notified the Carbon Credit Trading Scheme, 2023, to develop the domestic carbon market as the country aims at decarbonising the economy and has committed to cut emissions by 45% from the 2005 levels by 2030.

The Ministry of Power (MoP) has issued Carbon Credit Trading Scheme, 2023. According to the scheme, the central government shall constitute the National Steering Committee for Indian carbon market which will monitor the functions of Indian carbon market and recommend to Bureau to issue carbon credit certificate, among other functions. The Grid Controller of India Limited shall be the registry, while the Central Electricity Regulatory Commission shall be the regulator for the trading activities under the Indian carbon market. The commission shall register the power exchanges and approve the carbon credit certificate trading in the Indian carbon market, from time to time. Further, the power shall perform functions regarding trading of carbon credit certificates, in accordance with the regulations notified by the commission. [2]