Central Electricity Regulatory Commission of India Releases 2026 Carbon Credit Certificate Trading Regulations

The Central Electricity Regulatory Commission (CERC) of India recently issued the "Terms and Conditions for Trading of Carbon Credit Certificates Regulations (2026)", aiming to regulate the trading activities of Carbon Credit Certificates (CCCs) in the electricity market. The release of these regulations provides a clear trading framework for India's carbon credit market, covering the buying and selling of carbon credit certificates through power exchanges or other licensed methods.

According to the regulations, the Indian Grid Controller has been designated as the registry for carbon credit certificate exchanges, responsible for establishing the necessary operational framework under the Carbon Credit Trading Scheme (CCTS). Concurrently, the Bureau of Energy Efficiency (BEE) will act as the administrator for carbon credit certificates issued under the Energy Conservation Act, 2001, responsible for formulating detailed trading procedures and regulatory measures. This arrangement ensures the standardization and normalization of carbon credit certificate trading, providing clear guidance for market participants.

The regulations also specify the trading frequency, requiring that carbon credit certificate trading be conducted on a monthly basis, or using other periods approved by the Commission. When formulating relevant rules, business rules, and bylaws, including eligibility criteria, price discovery mechanisms, and interaction processes with the registry, power exchanges or other licensed entities must obtain prior approval from the Central Electricity Regulatory Commission of India. This provision aims to strengthen regulation, ensure the stability and fairness of the carbon credit certificate market, and support India's carbon reduction efforts.