Unleashing a Sustainable Future: Exploring Carbon Credits

India's Carbon Credit Trading Scheme (CCTS) aims to reduce greenhouse gas emissions by incentivizing entities to decarbonize the economy. The CCTS is being implemented in phases and is expected to be fully operational by 2025-2026.

How does the CCTS work?

Offset mechanism: Incentivizes voluntary actions from entities for GHG reduction.

Cap-and-trade: Polluters pay for their emissions by purchasing carbon credits.
Compliance mechanism: Addresses emissions from energy use and industrial sectors.

How can entities earn carbon credits?

By removing carbon dioxide from the environment through projects like:
- Renewable energy installations
- Certain forests
- Carbon capture facilities
- Building wind farms
- Supporting truck stop electrification projects
- Planting trees

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