How Will Carbon Credit Certificates Be Traded on India's Power Exchanges?
The roles of CERC, BEE, registries and approved power exchanges
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Introduction
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 regulations governing this in February 2026, gazetted in April 2026, giving the market its first formal rulebook for exchange-based trading. Traders, obligated entities and investors are now working out what it means for how they will actually transact.
This guide explains how carbon credit trading on India's power exchanges will work, which institutions do what, and where the current framework stands.
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The 2026 Regulations and Who Does What
CERC notified the CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026 on 27 February 2026, and the regulations were published in the Gazette of India on 27 April 2026.
They were issued under the Electricity Act, 2003, working alongside the Carbon Credit Trading Scheme, 2023 and the Energy Conservation (Amendment) Act, 2022, which together give CERC its authority over this trading.
Three institutions carry three distinct roles. BEE is the Administrator of the scheme, responsible for setting targets, accrediting verification agencies and issuing certificates. GRID-INDIA is the Registry, maintaining electronic accounts of CCC holdings and recording transactions executed through power exchanges. CERC regulates the trading itself, setting the rules the exchanges must follow, including who can transact and how prices are bounded.
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How CCCs Will Actually Be Traded?
Trading venue
CCCs are to be traded through power exchanges registered with CERC, unless the Commission permits another mode. Reporting names the Indian Energy Exchange, Power Exchange India Limited and Hindustan Power Exchange as CERC-registered exchanges eligible for this trading.
Two market segments
The regulations establish a Compliance Market for obligated entities working to meet their emission intensity targets, and a separate Offset Market where non-obligated entities can participate voluntarily.
Trading frequency
Trading sessions are expected on a monthly basis, or at such other periodicity as CERC may approve.
Price safeguards
Certificates traded under the compliance mechanism carry a Floor Price, the minimum, and a Forbearance Price, the maximum, both approved by CERC to maintain market stability.
What each certificate represents?
Each Carbon Credit Certificate represents the reduction, removal or avoidance of one metric tonne of carbon dioxide equivalent.
Who can participate?
Both obligated entities, through the Compliance Market, and non-obligated entities, through the Offset Market, can transact, subject to registration with the relevant registry.
Why the split matters?
Keeping the two markets separate means compliance-linked pricing safeguards, such as the floor and forbearance prices, apply only where a regulatory obligation is actually being met, while voluntary participation is not bound by the same constraints.
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What This Means for Market Participants?
Register early
Both obligated and non-obligated entities need a registry account with GRID-INDIA before they can transact.
Watch for exchange-specific onboarding
Each registered power exchange is likely to set its own participant requirements alongside the CERC framework.
Track the floor and forbearance prices
These bound compliance-market pricing and are set by CERC, not by the exchanges themselves.
Understand the segment you belong to
Compliance Market participation serves a different purpose than Offset Market participation, so confirm which applies to your entity before registering.
Expect a monthly rhythm
Plan certificate needs and surplus sales around the expected monthly trading sessions, unless CERC changes the periodicity.
Keep an eye on further procedural detail
Exchanges and CERC are expected to publish additional operating procedures as the market goes live, so treat the current framework as the foundation rather than the complete rulebook.
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Conclusion
The trading framework now has a legal foundation, with clear roles split between BEE, GRID-INDIA and CERC, and trading channelled through registered power exchanges.
Confirm your entity's registry status and which market segment applies to you before the first trading window opens for your certificates.
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Frequently Asked Questions
Where will CCCs be traded in India?
Carbon Credit Certificates will be traded through power exchanges registered with CERC, unless another mode is specifically permitted by the Commission.
Can CCCs be traded on IEX?
The Indian Energy Exchange is reported as one of the CERC-registered exchanges eligible for this trading, alongside other registered exchanges.
Who regulates CCC trading?
The Central Electricity Regulatory Commission regulates the trading itself, while BEE administers the scheme and GRID-INDIA maintains the registry.
How are CCC trades settled?
Trades executed on a registered power exchange are recorded through GRID-INDIA as the registry, though the detailed settlement process was not fully confirmed for this guide.
Can anyone buy a CCC?
Both obligated entities through the Compliance Market and non-obligated entities through the Offset Market can participate, subject to registration.
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