2023 · Paper V · 10 marksFrequently asked

What are various mitigation activities by the Government of India to lower CO2 emission for trading of carbon credits in the international market under Paris Agreement ?

In short

India is cutting CO2 and preparing for Article 6 carbon trading through the Energy Conservation (Amendment) Act, 2022, BEE's PAT scheme, digital MRV systems and the Green Credit Programme. The Carbon Credit Trading Scheme, notified in 2023, covers nine energy-intensive sectors and builds on over 1,500 CDM projects.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
India’s commitment to the Paris Agreement drives market-based CO2 mitigation activities to enable international carbon credit trading, supporting its net zero by 2070 target.
Institutional Framework and Capacity
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Energy Conservation1 Amendment Act, 2022

Provides legal authority for carbon credit trading schemes, establishing a regulatory foundation.

•

National Steering Committee and BEE

The National Steering Committee for the Indian Carbon Market coordinates policy; the Bureau of Energy Efficiency administers the Perform, Achieve & Trade2 (PAT) Mechanism, incentivizing emission3 reductions in energy-intensive industries.

Implementation Challenges and Outcomes
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Carbon Credit Trading Scheme (CCTS)

Covers nine energy-intensive sectors, promoting cost-effective emission reductions but requiring capacity building.

•

International Market Integration

India’s 1,500+ Clean Development Mechanism projects lay groundwork for Article 6 linkage, though operational rules remain under negotiation.

•

State4-Level Success in Andhra Pradesh

Andhra Pradesh’s industrial hubs like Visakhapatnam implement PAT and renewable energy obligations, demonstrating regional commitment.

•

Scaling and Equity Challenges

Expanding efforts across sectors and ensuring equitable carbon market access remain ongoing issues.

Way Forward
•

Capacity Building

Enhance training and coordination at state and local levels, especially in Andhra Pradesh’s industrial clusters.

•

Expand Digital MRV Infrastructure

Accelerate digital MRV and registry systems to improve data integrity and global registry integration.

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Promote Mission LiFE

Scale community-level mitigation to increase credible carbon credit supply.

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Policy Coordination and Negotiations

Finalize Article 6 rules and harmonize domestic schemes with international standards for global recognition.

Conclusion
India’s robust institutional frameworks and innovative market mechanisms under the Paris Agreement are key to reducing CO2 emissions and fostering a low-carbon economy aligned with sustainable development and inclusive growth.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: India's carbon credit toolkit. Mind map. India's carbon credit toolkit: PAT scheme; Carbon Credit Trading Scheme; Green Credit Programme; CDM experience; Digital MRV
Diagram: India's carbon credit toolkit

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