By Shashank Pandey

India recently launched the detailed procedures for the offset mechanism under the Carbon Credit Trading Scheme (CCTS), seeking to operationalise it. The CCTS fundamentally has two components, compliance, and offsets – the former is mandatory, and the latter is voluntary. These procedures govern the latter aspect of the credit market. This framework, drafted by the CCTS administrator, the Bureau of Energy Efficiency (BEE), seeks to align with global climate goals and set a precedent for robust governance in carbon markets. However, its effectiveness will be weighed during its implementation. The procedure has specific, unique characteristics that need to be underlined to understand the trajectory of the prospective voluntary carbon market (VCM) in India.

The procedural focus on specific timelines for stakeholders in the registration process is pivotal to ensure efficiency and accountability. The procedure elaborates a structured project cycle that begins with pre- and post-account registration on the India Carbon Market (ICM) portal, and progresses through stages like developing the project design document (PDD), and validation, monitoring, and issuing of carbon credit certificates (CCCs). Each stage has specific deadlines and responsibilities assigned to stakeholders like project developers, accredited carbon verification agencies (ACVAs), and BEE itself. For instance, the publication of draft PDDs on the ICM portal invites public scrutiny within 30 days, ensuring projects move forward without unnecessary delays. This timeline-driven approach streamlines administrative processes and builds confidence among........

© The Financial Express