Discover how India Carbon Credit Trading Scheme 2023 and GEI targets are reshaping industrial emissions, offering new opportunities and challenges on the path to Net Zero.
Introduction
India has officially crossed a historic milestone in its climate journey! With the Ministry of Environment, Forest and Climate Change (MoEFCC) notifying the Greenhouse Gas Emission Intensity (GEI) Targets 2025 under the India Carbon Credit Trading Scheme 2023, the country is laying the foundation for a fully functional, domestic carbon market.
This groundbreaking move directly impacts over 130+ leading industrial entities across sectors such as cement, aluminium, and oil refining, including heavyweights like UltraTech, Vedanta, Hindalco, JSW, ACC, Ambuja, Dalmia, Shree Cement, and NALCO.
The big question now is: How will the India Carbon Credit Trading Scheme 2023 shape the future of industry, investment, and climate action? Let’s dive deep into the opportunities and challenges ahead!
Understanding the India Carbon Credit Trading Scheme 2023
The India Carbon Credit Trading Scheme 2023 (CCTS) was introduced to regulate and reduce carbon emissions across major industries by assigning specific Greenhouse Gas Emission Intensity (GEI) Targets to individual entities.
Entities can meet these targets either by:
- Reducing their own emissions through clean technologies, or
- Purchasing carbon credits from compliant businesses via the Indian Carbon Market (ICM).
This market-based mechanism is designed to align with India’s Net Zero by 2070 commitment while promoting industrial innovation and global competitiveness.
Who’s Affected?
The notified sectors include:
- Aluminium manufacturers: Vedanta, Hindalco, NALCO.
- Cement producers: UltraTech, ACC, Ambuja, Dalmia, JSW Cement, Shree Cement, Ramco.
- White Cement brands: JK White, UltraTech White.
- Refineries: Utkal Alumina, Vedanta, NALCO.
- Portland Pozzolana Cement (PPC) and other cement categories.
- Grinding units and ultra-low emissions plants.
Over 130+ industrial giants are now accountable for their emission intensity per ton of equivalent production.
Why This Is a Milestone
This policy marks India’s transition from voluntary carbon offset practices to a compliance-based domestic carbon market. It creates a legally enforceable framework that incentivizes decarbonization, supports market-based trading, and integrates India into the global carbon credit ecosystem.
You can read the official MoEFCC notification here.
Opportunities Created by the India Carbon Credit Trading Scheme 2023
🌍 1. Strengthening India’s Global Green Image
The CCTS positions India as a future climate leader by embracing transparent and measurable carbon reduction methods. Companies that align with this framework will be globally recognized for environmental stewardship.
This not only supports India’s Net Zero 2070 vision but boosts the country’s reputation among global investors keen on sustainability.
💰 2. New Revenue Stream: Trading Carbon Credits
Companies reducing their emissions below the GEI target can earn carbon credits, which they can then sell on the Indian Carbon Market. This creates a dual advantage: reduce emissions and generate revenue!
Such markets already exist in Europe and China, and India’s entry into this domain will enable cross-border collaborations and joint ventures.
🏢 3. Encouraging Industrial Innovation
The pressure to meet GEI targets will fast-track investments in:
- Clean energy.
- Carbon capture technologies.
- Energy efficiency innovations.
For instance, companies like Dalmia Cement and JSW Cement are already piloting low-carbon cement solutions.
You can explore similar global innovations at Carbon Trust.
Challenges Ahead for India’s Carbon Credit Trading Scheme 2023
⚡ 1. Uneven Industry Readiness
Not all sectors are equally equipped to meet these emission targets. Small and mid-sized companies may struggle to upgrade technology or shift to renewable energy, unlike major conglomerates.
This could widen the compliance gap and trigger market distortions unless subsidies or green financing are introduced.
🔍 2. Transparency and Verification
The credibility of the carbon credit system relies on robust Monitoring, Reporting, and Verification (MRV) protocols. Without strict checks, the market risks becoming a breeding ground for greenwashing.
India must adopt blockchain-based or AI-powered verification systems to avoid fraudulent trading, similar to systems used by Verra and Gold Standard globally.
🏛️ 3. Policy Flexibility and Feedback Loops
The Ministry of Environment, Forest and Climate Change has invited public feedback on the policy. It remains to be seen whether the framework will evolve to accommodate emerging sectors like green hydrogen, EV manufacturing, and circular economy solutions.
Send your suggestions before the deadline at: ccts.hsm-moefcc@gov.in
Carbon Credit Trading: The Global Picture
Countries like European Union (EU), New Zealand, California, and South Korea have already leveraged carbon credit trading systems to great success.
India’s scheme has the potential to be Asia’s largest carbon market, offering billions in investment opportunities and playing a pivotal role in global climate diplomacy.
You can learn more about international systems on Carbon Pricing Dashboard by The World Bank.
Alignment with India’s Net Zero Ambitions
This policy dovetails perfectly with India’s larger climate goals:
- 🌱 Net Zero by 2070.
- ⚡ Renewable energy target: 500 GW by 2030.
- 💧 Hydrogen Mission: Scaling green hydrogen production.
Explore India’s commitment at: NetZeroIndia.org.
What Lies Ahead?
The success of the India Carbon Credit Trading Scheme 2023 will depend on:
- Industry cooperation.
- Transparent governance.
- Policy adaptability.
When implemented efficiently, it could be India’s most significant step yet toward a green industrial revolution.
Conclusion
The notification of GEI targets under the India Carbon Credit Trading Scheme 2023 is more than just a policy move — it is a blueprint for how India plans to decouple economic growth from carbon emissions.
With this bold step, the nation aims to balance industrial competitiveness with environmental responsibility, all while unlocking new opportunities for green jobs, tech innovation, and international investment.
If you’re an industrial player, policymaker, or sustainability enthusiast — now’s the time to engage, adapt, and align. The future of India’s carbon market starts today.
