India · Emissions trading system
Indian Carbon Credit Trading Scheme (CCTS) — compliance mechanism
India's CCTS is an intensity-based baseline-and-credit compliance scheme established under the amended Energy Conservation Act. Legally binding greenhouse gas emission intensity targets were notified for four sectors on 8 October 2025 and for three more on 16 January 2026, covering about 490 entities for the 2025–26 and 2026–27 compliance years.
In forcesince 8 Oct 2025Verified 4 Oct 2026
The Carbon Credit Trading Scheme, 2023 was notified on 28 June 2023 (S.O. 2825(E)) under section 14(w) of the Energy Conservation Act, 2001, following the Act's 2022 amendment; detailed compliance regulations were adopted in July 2024. Obligated entities receive greenhouse gas emission intensity targets set by the Ministry of Environment, Forest and Climate Change under the Environment (Protection) Act, 1986. Entities that beat their targets are issued Carbon Credit Certificates; those that miss them must submit certificates equal to the shortfall, and the April 2025 draft target rules provided for environmental compensation for non-compliance.
Final targets for aluminium, cement, chlor-alkali and pulp and paper were notified on 8 October 2025, and for petroleum refining, petrochemicals and textiles on 16 January 2026, using fiscal year 2023–24 as the baseline. The first compliance year is 2025–26 (from 1 April 2025). Targets for iron and steel and fertiliser were still pending, and about 740 entities would be covered once all nine sectors are notified.
Legal journey
From proposal to operation
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Enacted
Energy Conservation (Amendment) Act 2022 receives President's assent, enabling carbon credit trading
prsindia.org -
In force
Binding emission intensity targets notified for aluminium, cement, chlor-alkali, pulp and paper
icapcarbonaction.com
Each milestone links to the page it was checked against. Dates are given only to the precision the source supports.
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