BEE launches Carbon Credit Trading Scheme to reduce GHG emissions

HYDERABAD, Telangana: The Bureau of Energy Efficiency (BEE) is a statutory body under the Minister of Power, Government of India, which has launched the Carbon Credit Trading Scheme to address the concern of Green House Gas emissions and mitigation of climate change in India.

The authorities of BEE have stated that the scheme is focused on facilitating the trading of carbon credits and incentivizing and rewarding entities that remove, reduce or avoid GHG emissions and has appealed to all stakeholders to actively take part and provide support for the implementation of the scheme.

This scheme which came into force on June 28, 2023 recognizes the urgent need to combat climate change and highlights the pivotal role of market-based mechanisms in achieving emission reduction targets. The Carbon Credit Trading Scheme assigns a value, termed as carbon credit to each tonne of carbon dioxide equivalent (tCO2e) reduced or avoided.  These credits could be bought, sold, and traded within the carbon market framework of a country.

Abhay Bakre, Director General of BEE, stated, “By incentivizing emission reduction efforts and establishing a market for carbon credits, the scheme encourages active participation from entities across various sectors in greenhouse gas reduction activities. The initiative will not only help India meet its emission reduction commitments but also create tremendous economic opportunities and promote sustainable development.”

Proactive states such as Andhra Pradesh, Telangana, Karnataka, Kerala, Rajasthan, Gujarat, Assam, Haryana, Maharashtra, Punjab, and others have been appealed to play a key role in ensuring the success of the scheme and pave the way for a sustainable future by embracing the Carbon Credit Trading Scheme.