India to start carbon credit trading after four months: Power minister Manohar Lal

Carbon credit trading will start in India after four months, said power minister Manohar Lal. The government has already stated the detailed process for compliance and voluntary carbon markets under the Carbon Credit Trading Scheme, he said.

"We have made a framework and after four months, I can say that formally, carbon trading will start," he said at the International Conference on Carbon Markets Prakriti in the national capital.

The government on Saturday launched a dedicated carbon market portal at the conference which will facilitate registration, verification and trading processes.


India had notified the Carbon Credit Trading Scheme in 2023, under which nine methodologies have been approved so far.

The rollout comes as the country scales up renewable energy capacity and energy efficiency measures, with policymakers positioning carbon markets as an additional instrument to drive low carbon investments across sectors.

The Carbon Credit Trading Scheme is a market-based mechanism designed to put a price on emissions and incentivise reductions across sectors.

It operates through a compliance market and a voluntary market, where projects in areas such as renewable energy, biogas and forestry can generate tradable carbon credits.

More than 40 entities have registered projects so far spanning sectors such as biogas, green hydrogen, and forestry, according to the government.

On the compliance side, greenhouse gas emission intensity targets have been notified for nearly 490 obligated entities across seven energy intensive sectors.

These entities will be required to meet prescribed benchmarks, with emission reductions subject to monitoring, reporting and verification.

Officials said the framework is designed to create a structured market for carbon credits while ensuring transparency and credibility in emissions accounting.

The compliance market will operate alongside a voluntary mechanism, allowing entities to undertake projects and generate tradable credits.

Minister of state for power Shripad Naik outlined the key elements required for an effective carbon market, including credible measurement systems, adequate capital flows, and international collaboration.

He said digital monitoring, reporting and verification systems will underpin the credibility of emission reductions, while capital mobilisation will be critical for scaling investments in clean energy technologies.