Carbon Credit Trading Scheme (CCTS)
- Issued
- 2023-01-01
- Effective
- 2023-04-01
Applies to
Approximately 461–740 obligated entities across 9 sectors (aluminium, cement, chlor-alkali, pulp & paper, refining, petrochemicals, textiles, with steel and fertilizers next). Plus voluntary participants under the offset mechanism.
Key points
- Sectoral GHG-intensity targets notified Oct 2025 (aluminium, cement, chlor-alkali, pulp & paper) and Jan 2026 (refining, petrochemicals, textiles).
- Offset Mechanism v1 procedure (Mar 2025) with 8 approved methodologies.
- ACVs must hold ISO 14065 accreditation.
- Indian Carbon Market Portal launched 21 Mar 2026; first CCC trades expected mid-2026.
- Interaction with PAT: PAT subsumed; legacy ESCerts honoured for a transition window.
Applicability triggers
- Sector listed in Schedule of obligated entities
- Annual energy/GHG threshold (sector-specific)
- Or voluntary registration under the offset mechanism
Practitioner questions
- Is my plant in CCTS Phase 1 and what is my GHG-intensity baseline + FY26–FY30 trajectory?
- Which of the 8 BEE offset methodologies fits my project, and which ACVs are accredited?
- How do CCTS CCCs interact with Article 6.4 PACM credits or Verra-issued credits?
- How is the CCC banking and borrowing window structured each cycle?
Sources
Sectors
Related global frameworks
- Article 6UNFCCC
International carbon-market mechanisms under the Paris Agreement: Art 6.2 (bilateral ITMOs), Art 6.4 (PACM — centralised mechanism), Art 6.8 (non-market).
- GHG Protocol Corporate StandardGHG Protocol
Globally adopted corporate accounting and reporting standard for Scope 1, 2 and 3 GHG emissions. Foundation for ISSB IFRS S2 metrics, BRSR Core climate KPIs and SBTi target-setting.
- Verra VCSVerra
World's largest voluntary carbon program. Issues VCUs from approved methodologies across AFOLU, energy, waste, transport, industrial sectors.
- ICVCM Core Carbon PrinciplesICVCM
Quality threshold for voluntary carbon credits — ten Core Carbon Principles spanning governance, emissions impact and sustainable development.
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Three example questions — every answer cites the corpus.