All learn articlesCarbon markets · India

The CCTS document library

Every instrument governing India's carbon market, from the Energy Conservation Act, 2001 to the methodologies and tools issued under the offset mechanism — what each one does, and where the government publishes it.

Flora Carbon AI··9 min read
Agroforestry plantation on farmland in India

India's Carbon Credit Trading Scheme is governed by a layered stack of instruments — a parent Act, gazette notifications establishing the scheme, statutory rules setting emission intensity targets, detailed procedures for each mechanism, and the methodologies and tools an offset project actually calculates with — published across the Bureau of Energy Efficiency, the Ministry of Power and the Indian Carbon Market portal.

Key facts

  • CCTS rests on the Energy Conservation Act, 2001, as amended by the Energy Conservation (Amendment) Act, 2022, which gave the central government power to specify a carbon credit trading scheme.
  • The scheme itself was created by gazette notification S.O. 2825(E) of 28 June 2023 and amended by S.O. 5369(E) of 19 December 2023, which brought in the offset mechanism.
  • Compliance targets are set by statutory rules: the Greenhouse Gases Emission Intensity Target Rules, 2025 (S.O. 4739(E), 8 October 2025) and their amendment of 13 January 2026.
  • Each mechanism has its own detailed procedure — one for compliance (July 2024) and one for offset (March 2025) — which are the operational rulebooks a participant works from.
  • Twelve offset methodologies have been approved across energy, industry, waste, agriculture and forestry, including BM FR05.001 for mangrove afforestation and BM FR05.002 for afforestation on lands except wetlands.
  • Methodological tools are issued separately from methodologies, including a dedicated BM-T-AR series for afforestation and reforestation projects.
  • Trading is governed by CERC regulations notified on 27 February 2026, which set the terms for purchase and sale of Carbon Credit Certificates.

Which CCTS document should you read first?

Start with the detailed procedure for whichever mechanism applies to you, not with the scheme notification. The Carbon Credit Trading Scheme notification is a short instrument that establishes the market and names who administers it; it does not tell a project what to do. The operational answers live in the Detailed Procedure for Compliance Mechanism or the Detailed Procedure for Offset Mechanism.

After the procedure, the order that works is the applicable methodology, then the tools that methodology invokes, then the notification and rules for the legal framing. Reading the gazette notifications first is the usual mistake: they are the authority for the scheme's existence, but a project's obligations are almost entirely downstream of them.

How is the CCTS document stack organised?

There are five layers, and knowing which one you are in saves a great deal of confusion. The Acts provide the legal power. The gazette notifications create the scheme and define its terms. The statutory rules set binding targets on named entities. The detailed procedures set out the operational steps. The methodologies and tools do the quantification.

  • Acts — the Energy Conservation Act, 2001 and its 2022 amendment, which created the power to specify a carbon credit trading scheme.
  • Notifications — S.O. 2825(E) establishing CCTS, and S.O. 5369(E) adding the offset mechanism.
  • Rules — the Greenhouse Gases Emission Intensity Target Rules, which place binding targets on obligated entities.
  • Procedures — the detailed procedures for the compliance and offset mechanisms, and the ACVA accreditation procedure.
  • Methodologies and tools — the sector-specific quantification documents an offset project calculates with.

One consequence worth noting: the compliance mechanism and the offset mechanism are governed by almost entirely separate document sets below the notification layer. An obligated entity and an offset project developer read different rulebooks, use different templates and are verified against different criteria, even though both end up holding the same Carbon Credit Certificates.

Which documents matter for a forestry or agriculture project?

An offset project in the land sector works from a compact stack. The Detailed Procedure for Offset Mechanism sets the process from listing through issuance. One of the two forestry methodologies handles quantification — BM FR05.001 for degraded mangrove habitats, BM FR05.002 for afforestation and reforestation on lands except wetlands. The BM-T-AR series of tools then handles the component calculations.

  • BM FR05.002 — afforestation and reforestation of lands except wetlands, published 8 September 2025, the methodology most agroforestry and plantation projects will use.
  • BM FR05.001 — afforestation and reforestation of degraded mangrove habitats, published 27 March 2025, the blue carbon route.
  • BM AG04.002 — emission reduction through improved management practices in rice cultivation, published 30 June 2026.
  • BM-T-AR-0004 — estimation of carbon stocks and change in carbon stocks of trees and shrubs, the tool that does the biomass accounting.
  • BM-T-AR-0006 — change in soil organic carbon stocks, which matters wherever the project claims a soil pool.

The tools are not optional reading. A methodology such as BM FR05.002 is comparatively short precisely because it delegates the arithmetic to the BM-T-AR tools, so a project team that has read only the methodology has not yet seen how its own numbers will be produced. See also the offset mechanism explained.

What is still in draft?

Several methodologies are published for consultation rather than for use, and the distinction is load-bearing. A draft methodology carries an unassigned methodology number or a placeholder publication date, and it sits on the Bureau's site alongside approved ones. Using a draft as though it were approved would invalidate a project design.

The drafts currently out for comment cover shore-side electricity supply, recovery and recycling from end-of-life vehicles, mass rapid transit, accelerated carbon mineralization and cooking energy. The status column in the table below marks each of these, and the Bureau publishes a comment template alongside them. A further draft amendment to the GEI Target Rules is also open.

How does CCTS compare with the voluntary standards?

Structurally, CCTS resembles Verra and Gold Standard more than it differs from them: a scheme-level rulebook, sector methodologies, methodological tools, and mandatory independent verification — here by an Accredited Carbon Verification Agency rather than a VVB. The substantive difference is that CCTS is statutory. Its targets are set by rules made under an Act of Parliament and its compliance obligations bind named entities, which is not true of any voluntary standard.

For the equivalents elsewhere, see the VCS document library, the Gold Standard document library, and CCTS compared with the voluntary carbon markets.

How current are these versions?

Every entry below shows the version and publication date stated on the document itself at the date this page was last reviewed. The methodologies and tools carry an explicit publication date on their first page, and those dates are taken from the documents rather than inferred from a listing.

Indian carbon market documents are reissued frequently — the GEI Target Rules were amended within three months of being made — so treat a version here as a pointer rather than a guarantee. Every link is re-checked against the publisher's site on a schedule, and the Indian Carbon Market portal remains the authority. None of the documents' text is reproduced: the descriptions are ours, and the authoritative wording is the government's.

The documents

Every entry links to the publisher’s own copy, which is the authoritative text. Versions move: check the publisher’s page before relying on one for a project decision.

Acts

Acts — 3 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
The Energy Conservation Act, 20012001The parent statute establishing the Bureau of Energy Efficiency and the central government's powers over energy conservation, under which the carbon market was later built.
The Environment (Protection) Act, 19861986The environmental statute the CCTS framework draws on alongside the Energy Conservation Act, notably for compliance penalties.
The Energy Conservation (Amendment) Act, 20222022-12-20The amendment that inserted section 14AA, giving the central government the power to specify a carbon credit trading scheme. The legal foundation of CCTS.

Notifications

Notifications — 5 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
Carbon Credit Trading Scheme, 2023 — S.O. 2825(E)2023-06-28The gazette notification establishing the Carbon Credit Trading Scheme and the Indian Carbon Market, defining the Carbon Credit Certificate and naming the Bureau of Energy Efficiency as administrator.
Carbon Credit Trading Scheme (Amendment) — S.O. 5369(E)2023-12-19The amendment notification that brought the offset mechanism into CCTS and revised the scheme's definitions accordingly.
Greenhouse Gases Emission Intensity Target Rules, 2025 — S.O. 4739(E)2025-10-08The statutory rules setting greenhouse gas emission intensity targets on obligated entities, which is what makes the compliance mechanism binding.
Greenhouse Gases Emission Intensity Target (Amendment) Rules — S.O. 25(E)2026-01-13The amendment to the GEI Target Rules, revising targets and definitions within three months of the principal rules being made.
Draft Greenhouse Gases Emission Intensity Target (Amendment) Rules — S.O. 517(E)2026-06-26A further draft amendment to the GEI Target Rules, published for comment under section 3 of the Environment (Protection) Act, 1986.Under revision

Regulations

Regulations — 1 document. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 20262026-02-27How Carbon Credit Certificates are actually bought and sold — the market rules governing trading on the power exchanges.

Compliance mechanism

Compliance mechanism — 4 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
Detailed Procedure for Compliance Mechanism under CCTS2024-07The operational rulebook for obligated entities: how emissions are accounted, monitored, verified and reconciled against a GEI target.
Instruction: Monitoring Plan for the Emissions of Obligated Entities2026-06-17How an obligated entity builds its monitoring plan — emission sources, measurement points, emission factors, sampling and calibration.
Template: Monitoring Plan for the Obligated EntitiesThe spreadsheet an obligated entity fills in and submits to the Bureau within three months of the first trajectory period commencing.
Presentation: Capacity Building Workshop on Compliance MechanismThe Bureau's own training deck on the compliance mechanism, useful as an orientation to the detailed procedure.

Offset mechanism

Offset mechanism — 3 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
Detailed Procedure for Offset Mechanism under CCTS2025-03The operational rulebook for offset projects: project cycle, eligibility, additionality, validation, verification and issuance of Carbon Credit Certificates.
Approved Sectors in Offset Mechanism under CCTS2024-09-20The office memorandum listing the sectoral scopes approved for the offset mechanism on the recommendation of the National Steering Committee for the Indian Carbon Market.
Presentation: Capacity Building Workshop on Offset MechanismThe Bureau's own training deck on the offset mechanism, covering PDD development, additionality and common pitfalls.

Verification

Verification — 2 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agencyv1.02024-07How a body becomes an ACVA — the accreditation route for the agencies that carry out independent verification under both mechanisms.
List of Accredited Carbon Verification Agencies empanelled under CCTSThe maintained list of agencies currently empanelled to verify under CCTS. The place to check before appointing a verifier.

Methodologies

Methodologies — 12 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
BM EN01.001 — Grid-connected electricity generation from renewable sourcesv1.02025-03-27Quantification of emission reductions from renewable electricity supplied to the grid.Active
BM EN01.002 — Hydrogen production from electrolysis of waterv1.02025-03-27Quantification of emission reductions from hydrogen produced by water electrolysis.Active
BM EN01.003 — Electricity and heat generation from biomassv1.02026-06-30Quantification of emission reductions from biomass-fuelled electricity and heat generation.Active
BM IN02.001 — Energy efficiency and fuel switching measures for industrial facilitiesv1.02025-03-27Quantification of emission reductions from efficiency improvements and fuel switching at industrial facilities.Active
BM IN02.002 — Hydrogen production using methane extracted from biogasv1.02025-03-27Quantification of emission reductions from hydrogen produced using biogas-derived methane.Active
BM WA03.001 — Landfill methane recoveryv1.02025-03-27Quantification of emission reductions from capturing methane at landfill sites.Active
BM WA03.002 — Flaring or use of landfill gasv1.02025-03-27Quantification of emission reductions from flaring or productively using recovered landfill gas.Active
BM WA03.003 — Production of compressed bio-gas (CBG)v1.02026-06-30Quantification of emission reductions from producing compressed bio-gas.Active
BM AG04.001 — Methane recovery from livestock and manure management at households and small farmsv1.02025-03-27Quantification of emission reductions from small-scale manure management and methane recovery.Active
BM AG04.002 — Emission reduction through improved management practices in rice cultivationv1.02026-06-30Quantification of avoided methane from adjusted water and residue management in rice systems.Active
BM FR05.001 — Afforestation and reforestation of degraded mangrove habitatsv1.02025-03-27Quantification of net GHG removals from restoring degraded mangrove habitat. The blue carbon route under CCTS.Active
BM FR05.002 — Afforestation and reforestation of lands except wetlandsv1.02025-09-08Quantification of net GHG removals from afforestation and reforestation on non-wetland land. The methodology most agroforestry and plantation projects use.Active

Methodological tools

Methodological tools — 12 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
BM-T-001 — Combined tool to identify the baseline scenario and demonstrate additionalityv1.02025-03-27The additionality and baseline-selection test most CCTS methodologies invoke.Active
BM-T-002 — Project or leakage CO2 emissions from fossil fuel combustionv1.02025-03-27Calculation of CO2 emissions from fossil fuel burned within the project boundary or as leakage.Active
BM-T-003 — Baseline, project and leakage emissions from electricity consumptionv1.02025-03-27Calculation of emissions from electricity consumed, and monitoring of electricity generated.Active
BM-T-004 — Project emissions from flaringv1.02025-03-27Calculation of emissions arising from flaring a gas stream within the project boundary.Active
BM-T-005 — Mass flow of a greenhouse gas in a gaseous streamv1.02025-03-27Determination of how much of a given greenhouse gas is present in a measured gas stream.Active
BM-T-006 — Baseline efficiency of thermal and electricity systemsv1.02025-03-27Determination of the efficiency a baseline thermal or electrical system is assumed to have.Active
BM-T-008 — Project and leakage emissions from anaerobic digestersv1.02025-03-27Calculation of emissions associated with operating anaerobic digesters.Active
BM-T-010 — Project and leakage emissions from biomassv1.02025-03-27Calculation of emissions associated with sourcing and using biomass, including leakage.Active
BM-T-011 — Emissions from solid waste disposal sitesv1.02025-03-27Calculation of methane generated by waste deposited at a disposal site.Active
BM-T-013 — Project and leakage emissions from compostingv1.02025-03-27Calculation of emissions arising from composting operations.Active
BM-T-014 — Apportioning emissions between main product and co-productsv1.02025-03-27How emissions from a production process are split between the main product and its co- and by-products.Active
BM-T-015 — Remaining lifetime of equipmentv1.02025-03-27Determination of how long existing equipment would have continued operating, which bears on the baseline.Active

A/R methodological tools

A/R methodological tools — 5 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
BM-T-AR-0002 — Non-CO2 emissions from biomass burning in A/R activitiesv1.02025-03-27Estimation of non-CO2 greenhouse gases released by burning biomass in an afforestation or reforestation project.Active
BM-T-AR-0003 — Carbon stocks in dead wood and litter in A/R activitiesv1.02025-03-27Estimation of carbon stocks, and changes in them, held in the dead wood and litter pools.Active
BM-T-AR-0004 — Carbon stocks of trees and shrubs in A/R activitiesv1.02025-03-27Estimation of above- and below-ground biomass carbon in trees and shrubs. The central biomass accounting tool for a forestry project.Active
BM-T-AR-0005 — Emissions from displacement of pre-project agricultural activitiesv1.02025-03-27Estimation of the leakage caused when farming displaced by the project resumes elsewhere.Active
BM-T-AR-0006 — Change in soil organic carbon stocks in A/R activitiesv1.02025-03-27Estimation of soil organic carbon change resulting from afforestation or reforestation activity.Active

Draft methodologies

Draft methodologies — 5 documents. Titles and versions are as published; each links to the publisher’s own copy.
DocumentVersionDateWhat it governsStatus
Draft: BM EN01 (number unassigned) — Emission reduction by shore-side electricity supply systemDraft methodology for shore-side electricity supplied to berthed vessels, published for public comment.Under revision
Draft: BM WA03 (number unassigned) — Recovery and recycling of materials from end-of-life vehiclesDraft methodology for material recovery from scrapped vehicles, published for public comment.Under revision
Draft: BM TR06 (number unassigned) — Mass rapid transit systemDraft methodology for emission reductions from mass rapid transit, published for public comment.Under revision
Draft: BM CCUS10.001 — Accelerated carbon mineralization using reactive industrial wasteDraft methodology for carbon mineralization in industrial waste streams, published for public comment.Under revision
Draft: BM EN01 (number unassigned) — Cooking energyDraft methodology for emission reductions from improved cooking energy, published for public comment.Under revision

Frequently asked questions

What is the founding document of India's Carbon Credit Trading Scheme?

Gazette notification S.O. 2825(E), issued by the Ministry of Power on 28 June 2023, which established the Carbon Credit Trading Scheme under section 14AA of the Energy Conservation Act, 2001. It was amended by S.O. 5369(E) on 19 December 2023, which added the offset mechanism.

Which CCTS methodology applies to an agroforestry project?

BM FR05.002, afforestation and reforestation of lands except wetlands, published 8 September 2025. Mangrove and coastal restoration follows BM FR05.001 instead. Both delegate their carbon accounting to the BM-T-AR series of methodological tools.

How do I tell an approved CCTS methodology from a draft?

An approved methodology carries a full methodology number, a stated publication date and version on its first page. A draft carries an unassigned placeholder number and either no publication date or an unfilled date placeholder, and the Bureau publishes a comment template alongside it. Both sit on the same portal, so the distinction has to be read off the document itself.

Where are the CCTS documents officially published?

Across three government sites. The Indian Carbon Market portal at indiancarbonmarket.gov.in carries the notifications, procedures, methodologies and tools; the Bureau of Energy Efficiency site carries the Acts and office memoranda; and the Ministry of Power publishes the gazette notifications. The Indian Carbon Market portal is the most complete single index.

Does Flora Carbon AI host the CCTS documents?

No. This page catalogues the documents and describes what each one governs in our own words, and every entry links to the government's own copy. The published text on the government portals is the authoritative version.

Sources

The regulatory facts in this article trace to the following primary sources. Scheme rules, methodologies and procedures continue to evolve, so check the current text before relying on any of it for a project decision.

  1. Indian Carbon Market — Notifications

    The government's own index of the CCTS notification, its amendment, and the GEI Target Rules.

    Link checked

  2. Indian Carbon Market — Compliance Mechanism

    The detailed procedure, monitoring plan instruction and template for obligated entities.

    Link checked

  3. Indian Carbon Market — Offset Mechanism

    The detailed procedure, approved and draft methodologies, and methodological tools.

    Link checked

  4. Indian Carbon Market — Accredited Carbon Verification Agencies

    The accreditation procedure and the list of empanelled verification agencies.

    Link checked

  5. Indian Carbon Market — Acts

    The Energy Conservation Act, 2001 and the Environment (Protection) Act, 1986 as the portal publishes them.

    Link checked

  6. Indian Carbon Market — Regulations

    The CERC regulations governing purchase and sale of Carbon Credit Certificates.

    Link checked

Published by Flora Carbon AI · August 28, 2026

Next step

Scoping a carbon project in India?

Flora Carbon AI builds the measurement and verification evidence a carbon project needs, from land screening to registry-ready reporting.