Key takeaway: CCTS gives industrial units a binding emission-intensity target, and a cost if they miss it.
India's Carbon Credit Trading Scheme (CCTS) sets binding greenhouse gas emission-intensity targets for industrial units.
Emission intensity means emissions per unit of production. A unit meets its target when its intensity is at or below the number notified for it.
About 490 units are notified as obligated entities, including 173 textile units. Targets are set against a baseline of FY 2023-24.
Units that do better than their target can receive certificates that can be traded. Units that fall short must make up the gap, and compensation on a shortfall is set at 2× the average certificate price.
A unit that does not file is treated as if it improved nothing.