Compliance Year Active India
Carbon Credit Trading Scheme India

India's Carbon Credit Trading Scheme.
Now measured automatically.

CCTS requires sector-specific emission intensity targets from FY 2023–24. Sustaineve calculates your tCO₂e per unit of production, tracks your compliance position quarterly, and generates the registry-ready documentation.

Scope 1 IPCC 2006 & 2019 BEE Registry GHG Protocol

CCTS at a glance.

Sectors covered Textiles, aluminium, cement, pulp & paper, chlor-alkali, fertilizers, iron & steel, petroleum refining, petrochemicals
Baseline year FY 2023–24
Compliance year Started April 2025 (ongoing)
Mechanism Beat target → earn Carbon Credit Certificates (sellable on IEX/PXIL). Miss target → buy credits or pay penalty.
Penalty Financial penalty per tonne CO₂e shortfall + compliance failure consequences
Registry Indian Carbon Market portal (ICM) — Bureau of Energy Efficiency administered

All sectors under CCTS obligation

TextilesAluminiumCementPulp & PaperChlor-AlkaliFertilizersIron & SteelPetroleum RefiningPetrochemicals

What CCTS requires from manufacturers.

The Carbon Credit Trading Scheme (CCTS) is established under the Energy Conservation (Amendment) Act 2022. It is India's first compliance carbon market — mandatory for designated sectors, not voluntary.

Each obligated entity is assigned an emission intensity target — the maximum tonnes of CO₂e permitted per unit of production output in a given year. The target tightens annually against a notified baseline year.

Companies that achieve intensity below target earn Carbon Credit Certificates (CCCs) which can be sold on recognised power exchanges (IEX, PXIL). Companies above target must buy CCCs to cover the deficit or face regulatory penalties.

The Bureau of Energy Efficiency (BEE) administers the scheme, maintains the compliance registry, and verifies submissions.

How the compliance cycle works.

01

Baseline established

BEE notifies baseline year emission intensity for each sector. This becomes the reference point for all target trajectories.

02

Annual intensity target set

BEE issues annual reduction targets as a percentage below baseline. Targets are sector-specific and tighten each year.

03

Compliance year runs

Obligated entities measure actual Scope 1 emissions and production volume. Intensity = tCO₂e ÷ production units.

04

Position determined

Surplus (below target) → earn CCCs. Deficit (above target) → must acquire CCCs. Registry submission required.

Is your sector under CCTS obligation?

BEE has notified the following sectors under the CCTS framework. If your manufacturing operations fall within these categories, emission intensity compliance is mandatory.

Active

Aluminium

First-wave sector

Active

Fertilizer

First-wave sector

Active

Chlor-Alkali

First-wave sector

Active

Steel

High-intensity Scope 1

Active

Cement

Process + fuel emissions

Active

Pulp & Paper

First-wave sector

Active

Chemicals

Process emissions

Active

Textiles

Energy intensity focus

Source: Bureau of Energy Efficiency (BEE) notifications under the Energy Conservation (Amendment) Act 2022. Additional sectors are being notified progressively. Verify your current obligation with BEE directly.

CCTS compliance handled automatically.

Sustaineve builds CCTS intensity calculation into the core measurement engine. No separate tool. No manual calculation. Every figure traceable to source.

Intensity auto-calculation

Scope 1 total (tCO₂e) ÷ production volume = emission intensity. Calculated automatically from your verified inventory. No spreadsheet required.

Baseline year comparison

Your CCTS baseline year emissions are stored permanently. Every compliance year automatically compares actual intensity against baseline trajectory.

Target vs actual position

Real-time view of your compliance position — surplus (intensity below target, eligible to earn CCCs) or deficit (intensity above target, must buy CCCs).

Registry documentation

Full calculation audit trail for BEE registry submission. Emission factors, GWP values, production data, and methodology disclosed in exportable format.

What Sustaineve calculates for CCTS.

Parameter Unit Source Sustaineve
Total Scope 1 emissions tCO₂e/year Fuel combustion + process + fugitive Auto-calculated
Production volume Sector-specific (tonnes, units) Operator-submitted Guided input form
Emission intensity tCO₂e per production unit Derived Auto-calculated
Baseline year intensity tCO₂e per production unit BEE notification Stored permanently
Annual target intensity tCO₂e per production unit BEE notification Configurable per year
Compliance position Surplus / Deficit Derived Real-time view
Carbon Credit Certificates CCCs BEE registry Report-ready output

Common questions about CCTS.

What is CCTS in India?
CCTS (Carbon Credit Trading Scheme) is India's domestic carbon market established under the Energy Conservation (Amendment) Act 2022. It requires designated manufacturing sectors to meet annual emission intensity targets — measured in tCO₂e per unit of production. Companies that beat their targets earn Carbon Credit Certificates (CCCs) which can be traded on recognised power exchanges.
Which sectors are covered under CCTS?
The initial CCTS sectors notified by BEE include: Aluminium, Fertilizer, Chlor-Alkali, Iron & Steel, Cement, Pulp & Paper, Chemicals, and Textiles. The first compliance year began in FY 2023–24. Additional sectors are being added under subsequent BEE notifications.
What is an emission intensity target?
An emission intensity target specifies the maximum tCO₂e a company may emit per unit of production — for example, tCO₂e per tonne of aluminium produced or per tonne of yarn output. The baseline is established from a designated historical year. BEE sets annual reduction trajectories against this baseline.
How does Sustaineve calculate CCTS emission intensity?
Sustaineve divides total verified Scope 1 emissions (tCO₂e) by production volume for the period. Scope 1 is calculated from fuel consumption, process emissions, and fugitive emissions using IPCC 2006 and 2019 Refinement factors. The intensity figure and its full derivation are exportable for registry submission.
Does CCTS require third-party verification?
BEE requires that emission data submitted to the CCTS registry be verified by an accredited verification body. Sustaineve's audit trail — linking every figure to its source input, emission factor, and calculation step — is structured to support third-party verification efficiently.

CCTS Compliance

See your CCTS position calculated — in 30 minutes.

We'll walk through your Scope 1 data, calculate your emission intensity, and show you your compliance position against the BEE target trajectory.