23/03/2026
India is taking a decisive step towards building a structured and transparent carbon market ecosystem.
The recent announcement by Manohar Lal Khattar that carbon credit trading will commence in the next four months marks a significant milestone in India’s climate and energy transition journey.
The launch of a dedicated carbon market portal will streamline key processes including registration, verification, and trading—laying the foundation for a robust and credible marketplace.
India had already notified the Carbon Credit Trading Scheme in 2023, and with nine methodologies approved so far, the framework is steadily taking shape. The scheme introduces a market-based mechanism that assigns value to emissions, encouraging businesses to actively reduce their carbon footprint.
A dual-structure approach—comprising both compliance and voluntary markets—will enable participation across sectors. Projects spanning renewable energy, biogas, and forestry can generate tradable carbon credits, opening up new avenues for investment and sustainability-linked growth.
With over 40 entities already registered, the ecosystem is gaining early traction. The emphasis on rigorous monitoring, reporting, and verification (MRV), along with digital systems, signals the government’s intent to ensure transparency and credibility.
As highlighted by Shripad Naik, the success of this market will hinge on three key pillars:
• Credible measurement frameworks
• Adequate capital flows
• Strong international collaboration
For businesses, this is more than a regulatory development—it’s a strategic opportunity to align sustainability with value creation.
At Lawyer2CA, we see carbon markets emerging as a critical lever for driving low-carbon investments, unlocking new revenue streams, and enhancing ESG positioning.
