India’s carbon market challenge

Launch of credit trading scheme likely to slip into 2026 as government grapples with complex market design challenges

India’s much-anticipated carbon credit trading scheme (CCTS) has once more been delayed. Two years after the it was first announced by the government, the breakthrough emission trading framework will now likely slip into next year. The government hopes the carbon market will play an important role in achieving 50% non-fossil fuel powered energy by 2030. At the same time, the authorities are having to balance rapid economic growth. In 2024, India’s emissions were expected to end 4.6% higher than the year before (8% of the global total), despite the longer-term goal of achieving net zero by 2070. “Without stringent oversight, the market could face challenges like greenwashing and credit