India’s Carbon Market: A National Framework for Climate Action and Economic Growth

India’s Carbon Market, as outlined by the Bureau of Energy Efficiency (BEE), is a strategic initiative to accelerate decarbonization across sectors while enabling cost-effective compliance with climate goals. It introduces a robust, market-based mechanism to price greenhouse gas (GHG) reductions and reward entities for their climate-positive actions. 

🌍 National Commitment and Policy Foundation 

  • Paris Agreement Alignment: India ratified the Paris Agreement in 2016 and revised its Nationally Determined Contributions (NDCs) in 2022, committing to a 45% reduction in GHG emission intensity by 2030 from 2005 levels. 
  • Carbon Credit Trading Scheme (CCTS): Enacted under the Energy Conservation (Amendment) Act, 2022, the CCTS empowers the government to issue Carbon Credit Certificates (CCCs) for verified emission reductions. 

🏭 Dual Mechanism Structure 

  1. Compliance Mechanism: 
  • Targets energy-intensive sectors such as steel, cement, aluminium, and textiles. 
  • Entities must meet sector-specific GHG intensity targets or purchase CCCs to offset excess emissions. 
  • Builds on India’s successful Perform, Achieve, Trade (PAT) scheme, which saved over 106 million tonnes of CO₂ since 2015. 
  1. Offset Mechanism: 
  • Open to non-obligated entities undertaking projects in forestry, agriculture, transport, waste management, and carbon capture. 
  • Projects must follow a defined cycle of registration, validation, verification, and issuance to earn CCCs. 

📈 Market Readiness and Global Synergy 

  • Indian industries are already familiar with carbon pricing instruments like ESCerts, RECs, and CDM projects. 
  • The ICM will enhance India’s competitiveness in global trade, especially under emerging mechanisms like the EU Carbon Border Adjustment Mechanism (CBAM). 

RSJ’s Role in the Carbon Market 

As a trusted ESG assurance and sustainability validation platform, RSJ supports stakeholders by Offering third-party validation and verification services 

India’s Carbon Market is not just a climate policy—it’s a catalyst for innovation, investment, and sustainable development. RSJ is committed to empowering industries to lead this transition with credibility and impact.