India’s Domestic Carbon Market to Launch, Targeting High-Emission Industries
India will launch a nationwide carbon market in October 2025, imposing emissions caps and credit trading on core industries—a foundational step toward net zero and competitive global exports.
India to Launch Domestic Carbon Trading Market by October 2025
Ambitious Decarbonisation Push
India is preparing to roll out its domestic carbon trading market by October 2025, as part of efforts to regulate emissions from major polluting sectors and align with global decarbonisation trends. The Carbon Credit Trading Scheme (CCTS) will initially cover the aluminium, cement, chlor-alkali, and pulp & paper sectors, impacting 282 industrial units.
Phased Implementation
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Phase 1: Aluminium, cement, chlor-alkali, pulp & paper
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Phase 2: Steel, oil refining, chemicals, and textiles
Enterprises will be assigned emissions caps and required to buy or sell credits to ensure compliance. Future phases will tighten targets in line with India’s net-zero commitments.
Linking with Global Carbon Markets
The domestic carbon market will ultimately connect with the United Nations’ emissions trading systems via Article 6, enabling access to international finance and clean technologies.
Economic and Trade Implications
As the world’s third-largest emitter, India faces pressure to decouple economic growth from carbon output. The upcoming EU carbon border measures could penalise carbon-intensive exports, making domestic carbon trading vital.
For businesses, participation brings both new compliance costs and fresh opportunities:
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Earning revenue by reducing emissions
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Investing in green technologies
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Boosting competitiveness in global export markets
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