The Bureau of Energy Efficiency (BEE) has issued a draft Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agencies (ACV).

Stakeholders can submit their comments by November 22, 2023.

Under the new procedure, the reduction in greenhouse gas (GHG) emission intensity achieved by obligated entities will be assessed by ACVs accredited by BEE.

The ACV carrying out verification under the Indian Carbon Market (ICM) must be accredited for the sectoral scope where activity needs to be carried out.

The ACV seeking to conduct verification under the ICM must apply for accreditation in one or more sectoral scopes, including but not limited to:

• PAT – Designated Consumer Sectors
• Energy (renewable/non-renewable)
• Energy distribution
• Energy demand
• Construction
• Transport
• Mining/mineral production
• Fugitive emissions – from fuels (solid, oil, and gas)
• Fugitive emissions – from industrial gases (halocarbons and sulfur hexafluoride)
• Solvents use
• Waste handling and disposal
• Agriculture, forestry, and other land use
• Livestock and manure management
• Carbon capture and storage
• Green hydrogen and its derivatives

The ACV must be a firm registered under the Indian Partnership Act 1932 or a company incorporated under the Companies Act 1956. It must have a minimum annual turnover of ₹5 million (~$60,011) in at least one of the previous three years. A net worth of ₹2 million (~$24,048) will apply to newly formed organizations.

The ACV must demonstrate its ability to analyze, identify, and evaluate the nature, scale, and impact of potential financial risks stemming from its verification activities. Arrangements should be in place to cover the identified financial risks.

The ACV’s management structure must include one full-time accredited energy auditor, two full-time energy auditors, and other sector experts.

Application for Accreditation

An eligible verification agency wanting to undertake the verification functions under the ICM must submit an application form to the Bureau. It must contain sectoral scopes, resources, expertise, continued competence procedures, and policy and processes to ensure impartiality.

The agency must pay the application fee of ₹10,000 (~$120) along with the application form for accreditation.

Application Review

Once the application is received, the Bureau will review the application and undertake a completeness check of the application documentation. If the documentation is incomplete, the Bureau will inform the applicant of the missing elements within two weeks of the application submission and request re-submission.

After receiving all required documents and preliminary review, the Bureau will publish the name of the verification agency on the ICM website for stakeholder consultation. The stakeholders will have 15 days to provide any comments and information regarding the verification agency to Bureau through an email.

The Bureau for Assessment and Interaction/interviews with the verification agency will constitute an Accreditation Advisory Committee (AAC). The Bureau will invite the verification agency representative of the team lead and sector experts for an interview with the AAC. The AAC will conduct the interview/interaction with the verification agency and assess the competence based on the assessment report and interaction/interview.

Issuance of Accreditation Certificate

On acceptance of the recommendation of AAC, the Bureau will issue the accreditation certificate to the verification agency as an ACV on payment of the annual accreditation fee of ₹5,000 (~$60).

The certificate of accreditation will be valid for five.

Performance Monitoring

The Bureau may call upon the accredited energy agency to furnish information relating to details of verification activity conducted along with necessary documentation. It will also monitor the performance of the ACV for the verification activity by asking for an annual report on verification activity.

Accreditation Advisory Committee

The Accreditation Advisory Committee must consist of:

• Joint Secretary or equivalent to the Government of India in Ministry of Environment Forest and Climate Change
• Joint Secretary or equivalent to the Government of India in Ministry of Power
• Joint Secretary or equivalent to the Government of India in Ministry of New and Renewable Energy
• Joint Secretary or equivalent to the Government of India in the Ministry of Steel
• Director, Bureau of Energy Efficiency

The committee must at least meet once every quarter.

In July, The Ministry of Power, in consultation with the Bureau of Energy Efficiency, launched the Carbon Trading Program 2023, outlining the processes, regulating agencies, and rules for carbon credit trading in India.

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