The Energy Conservation Act of 2001 empowers the Central Government to specify rules regarding the Carbon Credit Trading Scheme. Exercising power given in section 14(w) of the Energy Conservation Act and consultation with the Bureau of Energy Efficiency incorporated under this act, the Central Government has notified a scheme called Carbon Credit Trading Scheme to enforce the efficient use of energy and its conservation. The Carbon Credit Trading Scheme sets up an Indian Carbon Market and constitutes various governing bodies for its administration and management.
What Was The Need For The Indian Carbon Market?
To minimise the carbon emission and charge those who emit Greenhouse Gases, it was necessary to implement the Indian Carbon Market in India. It will create demand for emission credits and attract the finance and technology for sustainable projects. To achieve India's 2030 target on climate change, the Indian Carbon Market will play a crucial role.