New Delhi, Oct. 20 -- India's Carbon Credit Trading Scheme (CCTS) is a historic milestone. Specific obligated entities across nine notified sectors-iron and steel, aluminium, cement, chlor-alkali, pulp and paper, petroleum refining, petrochemicals, textiles and fertilizers-are required to reduce their greenhouse gas (GHG) emissions below the assigned intensity target, for which they will be issued carbon credit certificates (CCCs).

A CCC, representing 1 tonne of CO2 emission, could be sold on power exchanges or banked for future compliance needs. Projects in non-obligated sectors can also generate credits for sale to obligated entities. Trading in CCCs, which is expected to commence soon, will establish an explicit and observable carbon ...