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Carbon Credit Certificates on India's Power Exchanges

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How will they be traded?

By ESG Astraa Advisory Team

In brief

Companies know they will eventually buy or sell Carbon Credit Certificates, but the actual venue and mechanics, where a trade happens and who oversees it, are less understood than the compliance obligation itself.

CERC notified the Carbon Credit Certificates Regulations, 2026
27 Feb 2026
= 1 tCO2e
1 CCC
Obligated entities reported to be going through emissions verification
≈490
In this article
  1. The venue matters as much as the obligation
  2. The 2026 Regulations and who does what
  3. Where the framework stands
  4. How CCCs will actually be traded
  5. A trading day under BEE's draft
  6. What this means for market participants
  7. Open questions to watch
  8. A legal foundation, with the operating detail still to come
  9. Frequently asked questions
  10. References

The venue matters as much as the obligation

Companies know they will eventually buy or sell Carbon Credit Certificates, but the actual venue and mechanics, where a trade happens and who oversees it, are less understood than the compliance obligation itself.

The 2026 Regulations and who does what

The regulations were issued under Section 178 read with Section 66 of the Electricity Act, 2003, alongside the Carbon Credit Trading Scheme (CCTS), 2023. CERC notified them on 27 February 2026, and law-firm notes date their publication in the Gazette of India to 3 March 2026.

Exhibit 1

Diagram showing the progression from 2022 Energy Conservation (Amendment) Act to 28 June 2023 CCTS notification and 27 Feb 2026 CERC CCC Regulations, 2026
The legal chain behind CCC trading.

Exhibit 2

Overview of responsibilities across BEE, GRID-INDIA, CERC, and Power exchanges
Who does what.

Where the framework stands

Exhibit 3

Where the framework stands

  1. 28 June 2023

    CCTS notified by the Ministry of Power, and amended in December 2023.

  2. 13 November 2024

    CERC publishes the draft CCC regulations.

  3. 27 February 2026

    CERC notifies the CCC Regulations, 2026.

  4. 31 July 2026

    Deadline for obligated entities' first-year compliance submissions (Form A for FY 2025-26).

  5. 19 October 2026

    BEE publishes a draft detailed procedure for transacting CCCs and invites comments for 15 days.

ESG Astraa

How CCCs will actually be traded

CCCs are to be dealt with through power exchanges registered with CERC, unless CERC permits another mode. Each exchange must first obtain CERC approval for its CCC trading rules and bye-laws.

Exhibit 4

Diagram depicting floor price minimum, market discovered price, and forbearance price maximum
How the compliance price band works.

A trading day under BEE's draft

BEE's draft sets a timetable for each session. It is a consultation draft awaiting CERC approval, so the details may change.

Exhibit 5

A trading day under BEE's draft

  1. 11:00

    REGISTRY

  2. 12:00–14:00

    EXCHANGES

  3. By 14:30

    EXCHANGES

  4. By 15:00

    REGISTRY

  5. By 16:00

    EXCHANGES

  6. By 16:45

    REGISTRY

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What this means for market participants

  1. 1Register early
  2. 2Watch for exchange-specific onboarding
  3. 3Track the floor and forbearance prices
  4. 4Understand the segment you belong to
  5. 5Expect a monthly rhythm
  6. 6Treat the framework as work in progress

Open questions to watch

The draft gives no date for the first trading session. That depends on the final procedure, approved exchange bye-laws and the first issuance of certificates.

Frequently asked questions

Where will Carbon Credit Certificates be traded in India?
CCCs will be traded through CERC-registered power exchanges, including IEX, PXIL, and HPX, unless CERC specifically permits another mode.
How frequently will CCC trading sessions occur?
Sessions are designed to take place monthly, with BEE's draft procedure scheduling the session on the last Thursday of each month.
Can carbon credit certificates bought on an exchange be resold?
Under BEE's draft detailed procedure, a certificate bought on an exchange cannot be resold, and non-obligated voluntary buyers must retire them.

Where ESG Astraa can help

About the author

ESG Astraa Advisory Team. ESG Astraa helps Indian companies collect ESG data, calculate emissions and file BRSR and other disclosures, with advisors alongside the software.

References

  1. CERC, Regulations notification summary, 27 February 2026 (Complinity legal update). complinity.com complinity.com
  2. Khaitan & Co, Carbon Credits Enter The Market: India's First Regulatory Framework For Exchange-Traded Carbon Credit Certificate, 31 March 2026. mondaq.com mondaq.com
  3. JSA Prism, Electricity and Power, March 2026. jsalaw.com jsalaw.com
  4. Law-firm practice note, Projects, Infrastructure & Energy, April 2026. tta.in tta.in
  5. Mercom India, CERC Issues Rules to Operationalize Carbon Credit Trading on Power Exchanges. mercomindia.com mercomindia.com
  6. Sustainability 101, India's Carbon Credits Are About to Get a Trading Rulebook (BEE notice of 19 October 2026; S&P Global report of 21 October 2026). sustainability101.in sustainability101.in
  7. Bureau of Energy Efficiency, Carbon Market page (roles; draft detailed procedure for transaction of CCCs). beeindia.gov.in beeindia.gov.in
  8. IndiaLaw LLP, Operationalizing India's Carbon Market (CCTS notified 28 June 2023). indialaw.in indialaw.in
  9. Carbon Neeti, India's CCTS guide, updated 27 October 2026. carbonneeti.com carbonneeti.com
  10. SolarQuarter, CERC Notifies 2026 Regulations To Formalize India's Carbon Credit Trading Market, 3 March 2026. solarquarter.com solarquarter.com
  11. Saur Energy, India's Carbon Market Edges Toward Its First Trade, August 2026 (Form A deadline of 31 July 2026). saurenergy.com saurenergy.com
  12. Lexology, Draft framework for trading of Carbon Credit Certificates through power exchange (CERC draft of 13 November 2024). lexology.com lexology.com

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