What Is the CCTS? India’s Carbon Credit Trading Scheme Explained

India’s Carbon Credit Trading Scheme (CCTS) is the country’s national framework for putting a price on greenhouse-gas emissions. If you run an energy-intensive business in India, the CCTS is likely to shape your compliance obligations — and your costs — for years to come. This guide explains what it is and what to do about it.

What is the CCTS in one sentence?

The CCTS is India’s compliance carbon market, notified under the Energy Conservation Act and administered by the Bureau of Energy Efficiency (BEE), under which obligated entities receive greenhouse-gas emission-intensity targets and trade Carbon Credit Certificates (CCCs) based on their performance against those targets.

How the scheme works

The mechanism is built on a simple incentive:

1. Targets are set. Each obligated entity receives a greenhouse-gas emission-intensity target (emissions per unit of output) on a declining trajectory.
2. Performance is measured. Entities monitor, report and have their emissions verified through a monitoring, reporting and verification (MRV) process.
3. Credits are issued or surrendered. Beat your target and you earn tradable Carbon Credit Certificates. Miss it and you must buy CCCs to make up the shortfall.
4. Trading happens on exchanges. CCCs are traded on the power exchanges, creating a market price for carbon.

Who is obligated under the CCTS?

The compliance mechanism applies to notified energy-intensive sectors. Many of these entities are already familiar with carbon-style obligations through the earlier PAT (Perform, Achieve, Trade) scheme, and are now transitioning into the CCTS framework.

If you were a PAT-designated consumer, you should assume the CCTS is relevant to you and confirm your obligations early.

CCTS vs PAT: what changed?

Aspect	PAT	CCTS
Metric	Specific energy consumption	Greenhouse-gas emission intensity
Tradable unit	ESCerts	Carbon Credit Certificates (CCCs)
Scope	Energy efficiency	Broader carbon pricing

The shift from PAT to CCTS moves India from a pure energy-efficiency lens to a genuine carbon-pricing framework, aligning domestic policy with global carbon markets.

What obligated entities should do now

• Confirm applicability and map your obligations under the notified targets.
• Establish a baseline for your current emission intensity.
• Model your position — will you be long (surplus CCCs to sell) or short (needing to buy)?
• Get MRV-ready so your data withstands verification.

Carbon Credit Consulting helps obligated entities do exactly this — from baseline setting to CCC trading strategy. Explore our CCTS compliance service or book a free consultation.