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The Bureau of Energy Efficiency (BEE) has released 12 offset methodologies under the Carbon Credit Trading Scheme (CCTS) to streamline carbon offset projects in India.

About the Indian Carbon Market

In June 2023, the Indian government launched the Indian Carbon Market (ICM) framework to reduce greenhouse gas emissions, called the Carbon Credit Trading Scheme (CCTS), which allows trading of carbon credits.

It aims to reduce greenhouse gas (GHG) emissions and help India achieve its Nationally Determined Contributions (NDCs) under the Paris Agreement.

What is the Offset Mechanism under CCTS?

The Offset Mechanism is a voluntary, project-based system designed for non-obligated entities (entities not covered under compliance mechanisms). These entities can register projects that reduce, remove, or avoid GHG emissions.

Successful projects earn Carbon Credit Certificates (CCCs) based on their performance against a baseline. This tool encourages emission reduction in sectors, which are not covered by mandatory compliance.

The Bureau of Energy Efficiency (BEE) approved 10 sectors for the Offset Mechanism in September 2024. 

• Phase 1 includes six sectors: energy, industry, waste, transportation, and others. Energy projects dominate, making up 83% of projects under India’s CDM and Voluntary Carbon Market. 
• Phase 2 will cover four additional sectors: construction, fugitive emissions, solvent use, and carbon capture, utilization, and storage (CCUS). Methodologies for these sectors are still under development.

How do these methodologies work?

The methodologies include two key components:

• Baseline sets the reference level of emissions.
• Monitoring ensures the project's performance is tracked accurately.

These methodologies cover sectors like energy production, industrial efficiency, waste management, and transportation. 

They are adapted from the UNFCCC’s Clean Development Mechanism (CDM) methodologies, which are globally recognized.

About the Bureau of Energy Efficiency (BEE)

It was established in March 2002 under the Energy Conservation Act, 2001, functioning under the Ministry of Power, to promote energy efficiency across all sectors of the country.

It develops policies and strategies that focus on self-regulation and market principles. It works with all stakeholders to encourage the adoption of energy-efficient measures, which helps reduce the energy intensity of the economy.

Key Functions & Initiatives

Standards & Labeling (S&L) Program: Mandatory/voluntary energy efficiency labels for appliances (e.g., ACs, refrigerators, LEDs).

Perform, Achieve, and Trade (PAT) Scheme: Targets energy-intensive industries (e.g., cement, steel) to reduce consumption. Excess savings generate tradable Energy Saving Certificates (ESCerts).

Energy Conservation Building Codes (ECBC): For energy-efficient design in commercial buildings. States adopt ECBC with BEE support. Extended to residential sectors in 2021.

National Mission for Enhanced Energy Efficiency (NMEEE): Part of India's National Action Plan on Climate Change (NAPCC).

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CARBON CREDITS MARKET 

CARBON SINK

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