India Carbon Market 2026: What Changed, What’s Coming, and How to Prepare

2026 marks the transition of India’s carbon market from framework design to operational reality. The Carbon Credit Trading Scheme (CCTS) is moving from gazette notification to compliance enforcement. EU CBAM is entering its definitive phase. And India’s voluntary carbon market is maturing rapidly.

What Changed in 2025-2026

• CCTS Rules Notified: Ministry of Power and BEE published CCTS rules defining 13 sectors, GHG intensity targets, CCC issuance and trading procedures, and MRV requirements.
• ICM Registry: CERSAI designated as the Indian Carbon Market registry for electronic issuance, holding, transfer, and retirement of CCCs.
• EU CBAM Transitional Phase Data: Indian exporters completed first year of quarterly CBAM reporting, revealing data gaps.
• BRSR Core Expansion: SEBI expanded mandatory BRSR Core to top 1,000 listed companies.
• Article 6 Progress: India-Japan JCM expanded. Several bilateral ITMO discussions initiated.

What’s Coming in 2026-2027

• CCTS Compliance Targets: BEE expected to notify sector-specific GHG intensity targets for first compliance cycle.
• CBAM Definitive Phase: From 1 January 2026, EU importers must purchase CBAM certificates. Default values apply where actual data unavailable.
• CCC Trading Commencement: First trades on IEX, PXIL expected as market goes operational.
• Accredited Verifier Ecosystem: BEE empanelling verification bodies for CCTS MRV. Limited capacity expected — early engagement critical.

How to Prepare

For Designated Consumers

Complete MRV readiness. Build ISO 14064-aligned GHG inventory. Prepare baseline data. Engage verifiers. Use our 15-step CCTS compliance checklist.

For EU Exporters

Calculate actual embedded carbon. Replace defaults with installation data. Document CCTS participation. See our CBAM calculation guide.

For Financial Institutions

Screen portfolio carbon exposure using GreenSetu. Integrate CCTS risk into credit assessment. Prepare for BRSR Core assurance.