Briefing Note: CERC (Carbon Credit Certificates) Regulations, 2026

On February 27, 2026, the Central Electricity Regulatory Commission (CERC) notified the Carbon Credit Certificate (CCC) trading regulations, creating India's first formal regulatory framework for carbon credit exchange under the Carbon Credit Trading Scheme (CCTS), 2023. The regulations establish Power Exchanges as the primary platform for buying and selling CCCs.

Institutional Architecture: The BEE serves as the Administrator, formulating transaction procedures and monitoring exchange transparency. The Grid Controller of India functions as the Registry, tracking transactions. CERC exercises overall market oversight. Market Structure: Two distinct market segments: a Compliance Market for Obligated Entities, and an Offset Market for Non-Obligated Entities. Trading will occur primarily on CERC-approved Power Exchanges (e.g. IEX, PXIL). Pricing: Each CCC represents 1 tonne of CO2e. Transactions must occur within a Floor Price and a Forbearance Price approved by CERC.

Obligated Entities must procure and surrender CCCs to meet emissions targets, with non-compliance attracting penalties. Entities that reduce emissions beyond their targets can sell surplus certificates on Power Exchanges, creating a potential revenue stream.