- Why India’s carbon credit market matters
- Supply-side opportunities
- Pricing dynamics and regulation
- Corporate demand drivers
- Risks and execution priorities
The short
- Global demand tailwind. Net-zero commitments are driving appetite for verified credits.
- Domestic opportunity. India’s industrial base and renewables pipeline can supply both compliance and voluntary markets.
- Price tiers emerge. $5-$8 for domestic compliance, $15+ for premium voluntary projects.
Supply-side opportunities
1) Renewables
Solar, wind, and hybrid plants feeding verified credits. Scale Large project sizes
2) Afforestation
Long-cycle carbon removal with co-benefits for biodiversity. Premium Co-benefits pricing
3) Industrial efficiency
Upgrades in cement, steel, and chemicals. Fast wins Lower verification friction
4) Waste-to-energy
Methane capture, biogas, and refuse-derived fuel projects.
Pricing & regulation
| Market | Price range | Notes |
|---|---|---|
| Domestic compliance | $5–$8/t | Early phase; liquidity building |
| Voluntary global | $15–$30/t | Premium for verified co-benefits |
Key: Bureau of Energy Efficiency to oversee framework and registry integrity.
Corporate demand drivers
- Heavy industry under domestic cap-and-trade
- Exporters facing CBAM-type tariffs
- Airlines & logistics managing Scope 3 emissions
Risks
- Verification bottlenecks delaying issuance
- Price volatility in global voluntary markets
- Regulatory lag in linking to overseas registries