The Central Electricity Regulatory Commission (CERC) has proposed a pivotal framework for trading Carbon Credit Certificates (CCCs) under the Draft Central Electricity Regulatory Commission (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2024. With the recent extension of the public consultation deadline to December 31, 2024, stakeholders have additional time to weigh in on these groundbreaking regulations aimed at bolstering India’s carbon trading ecosystem.

Key Highlights of the Draft Regulations

1. What Are Carbon Credit Certificates (CCCs)?
   CCCs represent a quantified reduction in greenhouse gas emissions, which can be traded to incentivize low-carbon initiatives. These regulations lay down clear guidelines to streamline the purchase and sale of CCCs in India.
2. Key Definitions
   • Floor Price: The minimum price at which CCCs can be traded on power exchanges.
   • Forbearance Price: The maximum price cap for CCC trading, ensuring affordability and market stability.
3. Role of the Grid Controller of India as the Registry
   The Grid Controller of India will act as the central registry for CCC trading. It will establish the required framework as per Section 6 of the Carbon Credit Trading Scheme (CCTS) 2023. This includes maintaining records and ensuring transparent transactions.
4. Bureau as the Administrator
   The Bureau will oversee the implementation and operation of the Carbon Credit Trading Scheme. This includes formulating procedures after public consultation and obtaining CERC’s approval.
5. Monthly Trading via Power Exchanges
   CCCs can only be traded through authorized power exchanges, ensuring a regulated and transparent market. Trading frequency is proposed to be monthly or as per CERC-approved schedules.

Why These Regulations Matter

• Encouraging Decarbonization: By defining floor and forbearance prices, the regulations aim to stabilize the carbon credit market, fostering investments in renewable energy and emission-reduction technologies.
• Strengthening Accountability: The involvement of the Grid Controller as the registry ensures robust monitoring and traceability of CCC transactions.
• Boosting Renewable Energy Adoption: A regulated market for CCCs incentivizes companies to adopt greener technologies, thereby aligning with India’s ambitious decarbonization goals.

How to Participate in the Public Consultation
Stakeholders can submit their suggestions and objections on these draft regulations to CERC by December 31, 2024. This extension offers an opportunity to shape the regulatory landscape of carbon credit trading in India.

Conclusion
The Draft CERC Regulations 2024 mark a significant step towards establishing a structured carbon trading mechanism in India. By addressing market challenges like price volatility and transaction transparency, these regulations could play a crucial role in achieving the country’s climate goals.

Stay informed and involved as India paves the way for a sustainable and low-carbon future.