Maarg Manthan · Topic 18.17

India’s Policy Structure Relevant to GHG Emissions

Environment & Ecology › International Environmental Governance and Conventions · Topic 18.17

India does not have a single climate law, but a set of policies, laws and institutions that shape its greenhouse gas (GHG) emissions. At the top are the Prime Minister's Council on Climate Change and the Ministry of Environment, Forest and Climate Change, the nodal ministry for the UNFCCC, which also compiles the national GHG inventory; the Ministry of Power, Ministry of New and Renewable Energy, Ministry of Petroleum and Natural Gas, Ministry of Coal, Ministry of Agriculture and others handle sector policy. Key laws and schemes include the Energy Conservation Act, 2001 (amended in 2022 to enable a carbon market and renewable consumption obligations) with the Bureau of Energy Efficiency and the Perform, Achieve and Trade (PAT) scheme; the Electricity Act, 2003 with renewable purchase obligations; the National Solar Mission; the National Policy on Biofuels; the National Electric Mobility Mission Plan and FAME scheme; the National Green Hydrogen Mission; the Green India Mission and compensatory afforestation laws; Bharat Stage emission norms; and the Carbon Credit Trading Scheme. India's recent national GHG inventories show that energy produces around three-quarters of emissions, agriculture about 13 percent, industrial processes about 8 percent and waste about 3 percent, with forests and trees offsetting around a fifth. The country reports through National Communications, Biennial Update Reports and its Nationally Determined Contributions; check the latest inventory.

5 min read · UPSC Prelims · Environment & Ecology · International Environmental Governance and Conventions

At a Glance

Nodal ministry MoEFCC
Efficiency law Energy Conservation Act 2001
Market scheme PAT; CCTS
Largest source Energy, about three-quarters
Reports NATCOM, BUR, NDC
Exam link UPSC Prelims, Environment & Ecology: International Environmental Governance and Conventions

Where Does It Fit?

This topic follows the NAPCC and sets out India’s wider institutional and policy structure for controlling emissions. It leads to the biodiversity conventions covered in the next part of the macro. Previous topic: National Action Plan on Climate Change (NAPCC) and India’s Climate Change Assessment. Next topic: Convention on Biological Diversity (CBD).

Which Institutions and Policies Shape India’s Emissions?

Area	Institution or policy
Overall coordination	Prime Minister’s Council on Climate Change; MoEFCC as UNFCCC nodal ministry
Energy efficiency	Energy Conservation Act 2001; Bureau of Energy Efficiency; PAT scheme; star labelling; Energy Conservation Building Code
Renewable energy	Ministry of New and Renewable Energy; National Solar Mission; renewable purchase obligations under Electricity Act 2003
Transport	Bharat Stage norms; National Electric Mobility Mission Plan; FAME and PM E-DRIVE; Biofuels Policy
Industry and markets	PAT; Carbon Credit Trading Scheme; Green Hydrogen Mission; Green Credit Programme
Land use and forests	Green India Mission; Forest Conservation laws; Compensatory Afforestation Fund
Agriculture and waste	National Mission for Sustainable Agriculture; waste rules; Swachh Bharat

What Does India’s GHG Inventory Show and How Does India Report?

Energy sector: about three-quarters of emissions (roughly 75 percent in recent inventories)
Agriculture: around 13 percent, mainly methane from livestock and rice
Industrial processes: about 8 percent, from cement, iron and steel and chemicals
Waste: about 3 percent
Land use and forestry: a net sink, offsetting about a fifth of emissions
Reports: National Communications and BURs to the UNFCCC
NDC: updated in 2022 and under review

What Else Should You Remember?

Energy Conservation Act 2001: created the Bureau of Energy Efficiency, set up under the Ministry of Power
2022 amendment: introduced a carbon market, renewable energy consumption obligations and energy conservation building codes for large buildings
PAT: a trading scheme for energy-saving certificates among energy-intensive industries, launched 2012
CCTS: Carbon Credit Trading Scheme, notified 2023
RPO and RCO: renewable purchase and consumption obligations
UJALA: LED bulb distribution scheme that cut electricity demand
PM-KUSUM: solar pumps scheme for farmers
Rooftop solar: PM Surya Ghar Muft Bijli Yojana, 2024
Coal cess: a cess on coal was used for clean energy until GST compensation cess
National Clean Energy Fund: built from the coal cess
Fuel standards: Bharat Stage VI fuel from 2020
Fly ash and FGD: power plant emission norms
Green hydrogen: National Green Hydrogen Mission, 2023
Waste to energy: GOBARdhan and compressed biogas
Methane: India is not in the Global Methane Pledge
HFC phase-down: Kigali schedule from 2028
Climate Change Division: in MoEFCC
State action plans: SAPCCs and state EV and solar policies
National GHG inventory: compiled by MoEFCC with INCCA data
Long-Term Strategy: LT-LEDS submitted in 2022, focused on net zero by 2070
No single climate law: India has no overarching climate act, unlike the UK or some others
Link to previous: see National Action Plan on Climate Change (NAPCC) and India’s Climate Change Assessment
Link to next: see Convention on Biological Diversity (CBD)
Link to India’s stand: see India’s Position on Climate Change Policy
Caution: inventory shares, scheme details and report numbers change with each submission
Exam hint: group policies into institutions, energy, transport, industry markets, land and reporting
Sector ministries: coal, power, new and renewable energy, petroleum, road transport, heavy industries, agriculture and housing each shape emissions
NITI Aayog: provides policy advice on energy, transport and climate-related reforms
Financial regulators: SEBI and RBI have started to require or encourage climate-related disclosure
Green taxonomy: India is working on a framework to classify green investments
GHG inventory: the national greenhouse gas inventory is compiled using IPCC guidelines and reported in National Communications
Energy-use targets: BEE sets sector targets under PAT cycles, and industries trade certificates on power exchanges
Uncertain future law: a climate law has been proposed by experts to give targets legal force, but none exists now

Why Does It Matter for the Exam?

Nodal: MoEFCC
Efficiency body: BEE
Largest source: Energy
Current affairs link: CCTS and Energy Conservation Amendment
Common errors: saying India has a single climate change act

As an analytical point, India’s climate governance is spread across many ministries, which makes coordination a challenge. A single law could give legal backing to targets and a carbon market, but current policy mixes schemes, standards and market tools.

Why Is This Topic Important?

Spread Many ministries
Tools Standards, markets
Gap No single law

What Came Next?

The next topic covers the Convention on Biological Diversity. Next topic: Convention on Biological Diversity (CBD).

Key People and Terms

BEE Bureau of Energy Efficiency
PAT Perform Achieve Trade
CCTS Carbon Credit Trading Scheme
NATCOM National Communication
BUR Biennial Update Report
LT-LEDS Long-term low emission strategy

Exam Corner

Points to Remember

Nodal ministry: MoEFCC.
Energy: about three-quarters of GHGs.
PAT launched 2012.
CCTS notified 2023.
No single climate law.

Do Not Confuse With

PAT and CCTS Energy-saving certificate trading versus carbon credit market
NATCOM and BUR Full report versus biennial update
BEE and MNRE Efficiency body versus renewable ministry

Memory Hook

Energy’s three-quarters; efficiency, renewables, transport, markets; reports to the UN.

Mains Angle

Questions ask for institutions and shares. These points help.

Institutions Many
Tools Standards, markets
Inventory Energy first

A Question You May Face

An original practice question, not a past paper question.

“Describe the policy and institutional structure in India relevant to controlling greenhouse gas emissions.”

How to Answer

Institutions MoEFCC and others.
Policies Efficiency, RE.
Markets PAT, CCTS.
Reports UNFCCC.

GS Relevance

Prelims: laws, schemes, inventory shares. GS Paper 3: climate policy architecture.

Frequently Asked Questions

Which institutions deal with climate change policy in India?

The Prime Minister's Council on Climate Change provides overall guidance, and the Ministry of Environment, Forest and Climate Change is the nodal ministry for the UNFCCC. Sector ministries for power, new and renewable energy, petroleum, coal, agriculture and transport implement policies, and the Bureau of Energy Efficiency runs efficiency programmes.

What is the Perform, Achieve and Trade scheme?

The Perform, Achieve and Trade scheme, launched in 2012 under the National Mission for Enhanced Energy Efficiency, sets energy-saving targets for energy-intensive industries. Units that exceed their targets get energy-saving certificates, which they can sell to units that fall short, creating a market-based way to improve industrial energy efficiency.

What is the Carbon Credit Trading Scheme?

The Carbon Credit Trading Scheme is a domestic carbon market framework notified in 2023 under the Energy Conservation (Amendment) Act, 2022. It allows the issuing and trading of carbon credit certificates, with compliance targets for obligated sectors and a voluntary offset mechanism, managed by the Bureau of Energy Efficiency under the Ministry of Power.

Which sector emits the most greenhouse gases in India?

The energy sector, which includes electricity, transport and fuel use in industry and homes, accounts for roughly three-quarters of India's greenhouse gas emissions, according to India's recent national inventories. Agriculture contributes around 13 percent, industrial processes about 8 percent and waste around 3 percent, with forests absorbing about a fifth.

Does India have a single climate change law?

No. India does not have an overarching climate change act. Climate policy is delivered through a mix of national missions under the NAPCC, laws such as the Energy Conservation Act and Electricity Act, sectoral schemes, standards and market tools, and international commitments such as the NDC, rather than a single legislation setting binding national targets.

PYQ Practice — Statement Analysis

1 MoEFCC is the nodal ministry for the UNFCCC in India.

True

It coordinates reporting.

2 India has one climate change act.

False

It has no such single law.

3 PAT is a trading scheme for energy-saving certificates.