India’s Bureau of Energy Efficiency (BEE) has released draft rules for the country’s planned compliance carbon market, in which India is eyeing a intensity based scheme rather than one with an absolute cap on greenhouse gas (GHG) emissions. The draft notably details the compliance mechanism, GHG emission intensity trajectory, verification process and issuance of carbon credits.
The draft states that the obligated entity who exceeds the targeted GHG emission intensity in any compliance cycle is entitled for issuance of the Carbon Credit Certificates based on the difference in the achieved GHG emission intensity and targeted GHG emission intensity for the production quantity in the relevant compliance cycle. However, the obligated entity who fails to achieve the targeted GHG emission intensity in any compliance cycle is entitled to purchase the Carbon Credit Certificates based on the difference in the achieved GHG emission intensity and targeted GHG emission intensity for the production in the relevant compliance cycle.
In addition, the draft states that, to establish the GHG emission intensity targets, the BEE will calculate the GHG emission intensity in the baseline year and the targets of GHG emissions intensity for the trajectory period for each compliance cycle covering the direct energy, non-energy and indirect energy related emissions. The Indian Government will notify the GHG Emission intensity targets in terms of tons of CO2 equivalent per unit of equivalent product for each cycle of defined trajectory for the considered obligated entities.
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