# India: 490 plants have emission-intensity targets, but no carbon credit has traded yet

_Last checked 2026-11-12 · https://asiacarbondesk.com/india-ccts/_

India's Carbon Credit Trading Scheme sets each plant a greenhouse gas intensity target per tonne of product. Plants that beat it earn tradable credits; plants that miss it must buy them. Targets now cover 490 entities, and the trading rules are in place, but trading is expected only from 2026-27.

## Key facts

- Obligated entities: 490 (after the January 2026 notification)
- Iron and steel (draft): 255 (entities proposed on 26 June 2026)
- Estimated final coverage: ~795 (entities (Ministry of Power, March 2025))
- Penalty for a shortfall: 2× (the average traded credit price for that year)
- Offset methodologies: 9 (approved; over 40 entities submitting projects)
- Trading start: 2026-27 (expected; monthly sessions on power exchanges)

## In brief

- The Carbon Credit Trading Scheme was notified on 28 June 2023. It sets each obligated plant a greenhouse gas emission intensity target in tCO2e per tonne of product, against a 2023-24 baseline, for the compliance years 2025-26 and 2026-27.
- Targets cover 490 entities (the Press Information Bureau total of 22 January 2026): 282 in aluminium, cement, chlor-alkali and pulp & paper from October 2025, and 208 in refineries, petrochemicals, textiles and secondary aluminium from January 2026. A June 2026 draft would add 255 iron and steel entities.
- A plant that misses its target must buy Carbon Credit Certificates (1 per tCO2e); otherwise it pays environmental compensation of twice the average traded price, within 90 days.
- CERC's trading rules of 27 February 2026 set monthly trading on power exchanges within a floor and forbearance price band. No band and no trade had been published in the official texts we read as of 12 November 2026.

## Obligated entities with notified targets (cumulative), with the draft steel step and the 795 estimate

| Period | Obligated entities |
|---|---|
| Oct 2025 | 282 |
| Jan 2026 | 490 |
| Jun 2026 (draft) | 745 (calc.) |

## Entities with targets, by sector

| Period | entities |
|---|---|
| Iron & steel (draft) | 255 |
| Cement | 186 |
| Textiles | 173 |
| Pulp & paper | 53 |
| Chlor-alkali | 30 |
| Refineries | 21 |
| Aluminium | 13 |
| Petrochemicals | 11 |
| Secondary aluminium | 3 |

## One plant's targets: Vedanta Jharsuguda Smelter II (tCO2e per tonne of aluminium)

| Period | tCO2e per tonne |
|---|---|
| 2023-24 baseline | 13.8878 |
| 2025-26 target | 13.7232 |
| 2026-27 target | 13.2965 |

## Emissions intensity of India's GDP, reduction from 2005 (%), and the 2030 goal

| Period | Reduction vs 2005 |
|---|---|
| 2010 | 12 |
| 2014 | 21 |
| 2016 | 24 |
| 2019 | 33 |
| 2030 | — |

## Where the estimated 795 obligated entities are: top 5 states

| Period | entities |
|---|---|
| Gujarat | 101 |
| Odisha | 83 |
| Chhattisgarh | 76 |
| Rajasthan | 70 |
| Karnataka | 55 |

## From the 2022 law change to monthly trading

| Date | Event |
|---|---|
| 2022-05-30 | India notifies its national authority for Article 6 of the Paris Agreement. |
| 2023-06-28 | Carbon Credit Trading Scheme, 2023 notified under the Energy Conservation Act. |
| 2023-12-19 | Scheme amended (S.O. 5369(E)). |
| 2024-07 | Compliance procedure and MRV framework published. |
| 2024-11-13 | CERC publishes draft trading regulations. |
| 2025-04-16 | Draft emission intensity target rules published. |
| 2025-08-07 | India and Japan sign a Joint Crediting Mechanism agreement under Article 6.2. |
| 2025-10-08 | First targets: 282 entities in aluminium, cement, chlor-alkali, pulp & paper. |
| 2026-01-13 | 208 more entities added; total 490. |
| 2026-02-27 | CERC notifies the carbon credit trading regulations. |
| 2026-03-21 | Indian Carbon Market portal launched. |
| 2026-06-26 | Draft targets proposed for 255 iron and steel entities. |
| 2026-10 | BEE drafts the trading procedure: sessions on the last Thursday of each month. |
| 2027-03-31 | Compliance year 2026-27 ends — the last year with notified targets. |

## How the compliance mechanism works

| Step | What happens |
|---|---|
| Target set | An annual intensity target per tonne of product, against a 2023-24 baseline, for a 3-year trajectory. |
| Measure and verify | Direct and purchased-energy emissions are reported and checked by an accredited verifier. |
| Credits or shortfall | (Target − achieved intensity) × output: beat it and receive credits, miss it and owe that many. |
| Trade monthly | Credits change hands on power exchanges; extra credits can be banked for later years. |
| Penalty if short | Environmental compensation of 2× the average traded price, payable within 90 days. |

## Who is covered

| Item | Rule |
|---|---|
| Sectors with targets (Oct 2025) | Aluminium 13, cement 186, chlor-alkali 30, pulp & paper 53 — 282 entities |
| Sectors added (Jan 2026) | Textiles 173, refineries 21, petrochemicals 11, secondary aluminium 3 — 208 entities |
| Total today | 490 obligated entities (PIB, January 2026): 282 from October 2025 plus 208 from January 2026 |
| Proposed next | Iron and steel: 255 entities (draft, 26 June 2026) |
| Not covered | Thermal power plants; fertiliser identified but no targets notified |
| Emissions counted | Direct plus indirect from purchased electricity and heat |
| Gases | 7 named, including CO2, CH4, N2O, HFCs, PFCs, SF6 (list not exhaustive) |
| Baseline / target years | 2023-24 baseline; targets for 2025-26 and 2026-27 |
| Estimated final scope | About 795 entities (March 2025 estimate) |

## Carbon Credit Certificates and offsets at a glance

| Item | Status |
|---|---|
| Unit | 1 Carbon Credit Certificate = 1 tCO2e |
| Market segments | 2: a compliance market and an offset market, on power exchanges |
| Trading frequency | Monthly; draft procedure proposes the last Thursday of each month |
| Price band | Floor and forbearance price to be approved by CERC; none found published |
| Bid defaults | More than 3 in a quarter: barred for 6 months |
| Offset methodologies | 9 approved; over 40 entities submitting projects (March 2026) |
| Offset sectors | 10 groups, from energy and industry to forestry and carbon removal |
| Article 6 | 14 eligible activities; India–Japan JCM signed 7 August 2025 |
| Institutions | Registry: Grid Controller of India; Administrator: BEE; regulator: CERC |

## All figures

| Item | Value | Source | Checked |
|---|---|---|---|
| Scheme notified | 28 June 2023 (S.O. 2825(E), under the Energy Conservation Act, 2001) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |
| Scheme amended | 19 December 2023 (S.O. 5369(E)) | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Legal basis | Energy Conservation (Amendment) Act, 2022 — clause (w) of section 14 | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Unit of a carbon credit | 1 credit = 1 tCO2e reduced, removed or avoided | [Ministry of Power / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/L45218/1734693005.pdf) | 2026-11-12 |
| Greenhouse gases named in the scheme | 7 named (CO2, CH4, N2O, HCFCs, HFCs, PFCs, SF6), list not exhaustive | [Ministry of Power / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/L45218/1734693005.pdf) | 2026-11-12 |
| National Steering Committee meetings | At least 1 meeting per quarter; chaired by the Power Secretary, co-chaired by the Environment Secretary | [Ministry of Power / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/L45218/1734693005.pdf) | 2026-11-12 |
| First GEI targets (October 2025) | 282 obligated entities in 4 sectors: aluminium, cement, chlor-alkali, pulp & paper | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239&reg=3&lang=1) | 2026-11-12 |
| First target rules gazetted | 8 October 2025 (G.S.R. 739(E), Environment (Protection) Act, 1986) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Cement entities with targets | 186 (count of entities listed in Table 2 of the 2025 Rules) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Aluminium entities with targets (October 2025) | 13 (count of entities listed in Table 1: 8 smelters, 5 refineries) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Chlor-alkali entities with targets | 30 (count of entities listed in Table 3, CNAOE001–CNAOE030) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Pulp & paper entities with targets | 53 (count of entities listed in Table 4) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Baseline year | 2023-24 (baseline output and baseline GHG emission intensity) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Compliance years with targets | 2025-26 and 2026-27 | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Target metric | tCO2e per tonne of equivalent product (refineries: tCO2e per MBBLS/NRGF) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| First-year target for the October 2025 sectors | Pro rata for 7 months, September 2025 to March 2026 | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Second set of targets (January 2026) | 208 obligated entities: petroleum refineries, petrochemicals, textiles, secondary aluminium | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239&reg=3&lang=1) | 2026-11-12 |
| Textile entities with targets | 173 (count of entities listed in the Second Schedule, TXTOE001–TXTOE173) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Petroleum refinery entities with targets | 21 (count of entities listed in the Second Schedule, REFOE001–REFOE021) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Petrochemical entities with targets | 11 (count of entities listed in the Second Schedule) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Secondary aluminium entities with targets | 3 (Hindalco Taloja, Hirakud FRP, Mouda) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Obligated entities after January 2026 | 490 obligated entities (PIB, 22 Jan 2026: the 282 from October 2025 in aluminium, cement, chlor-alkali and pulp & paper, plus 208 in petroleum refineries, petrochemicals, textiles and secondary aluminium) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239&reg=3&lang=1) | 2026-11-12 |
| First-year target for the January 2026 sectors | Pro rata for 3 months, January to March 2026 | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-de57eb4cfcc5ab0c_1776057184.pdf) | 2026-11-12 |
| Iron and steel: draft targets | 255 entities listed in a draft Third Schedule (G.S.R. 517(E), 26 June 2026); target for 2026-27 only | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-bbce4f833a613eae_1783081829.pdf) | 2026-11-12 |
| Comment period for the steel draft | 60 days from publication | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-bbce4f833a613eae_1783081829.pdf) | 2026-11-12 |
| Obligated entities if the steel draft is adopted | 745 = 490 (f22) + 255 (f24) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-bbce4f833a613eae_1783081829.pdf) | 2026-11-12 |
| Estimated eventual coverage (March 2025) | About 795 obligated entities | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Gujarat | 101 (of 795, March 2025 estimate) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Odisha | 83 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Chhattisgarh | 76 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Rajasthan | 70 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Estimated obligated entities: Karnataka | 55 (of 795) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Sectors identified for the compliance mechanism | 9: aluminium, cement, steel, paper, chlor-alkali, fertiliser, refinery, petrochemical, textile | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Power sector | Thermal power plants not moved from PAT into the CCTS (Dec 2025); fertiliser has no notified targets yet | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2198780&reg=3&lang=1) | 2026-11-12 |
| Emissions counted | Direct plus indirect (grid electricity, imported heat) — Scope 1 and 2 | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) | 2026-11-12 |
| Trajectory period | 3 years, with annual targets (compliance cycles) | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) | 2026-11-12 |
| Penalty for a shortfall | Environmental compensation = 2 × the average CCC price in that compliance year's trading cycle | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Deadline to pay compensation | 90 days from the order (imposed by the Central Pollution Control Board) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Draft target rules published | 16 April 2025 (G.S.R. 234(E)) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Trading rules notified | CERC CCC Regulations, 2026, dated 27 February 2026 | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Draft trading rules | Published for comment 13 November 2024 | [Central Electricity Regulatory Commission (CERC)](https://www.cercind.gov.in/2024/draft_reg/PN-PoCCC-2024.pdf) | 2026-11-12 |
| Market segments | 2: a Compliance Market and an Offset Market | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Trading frequency | Monthly (12 sessions a year) unless CERC approves otherwise | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Price band | Floor and forbearance prices for the compliance market, to be approved by CERC on a BEE proposal; no values found in the texts read | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Bid-default sanction | More than 3 defaults in a quarter: barred from CCC dealing for 6 months | [Central Electricity Regulatory Commission (CERC)](https://cercind.gov.in/regulations/205-Noti.pdf) | 2026-11-12 |
| Proposed trading day (draft, October 2026) | Last Thursday of every month | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-ff98b7dece646232_1792561430.pdf) | 2026-11-12 |
| Expected start of compliance trading | 2026-27 (stated 13 March 2025) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Earlier target dates (September 2024) | Mandatory sectors by October 2026; voluntary sectors by April 2026 | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2057980&reg=3&lang=1) | 2026-11-12 |
| Offset methodologies approved | 9 (e.g. grid renewables, hydrogen, landfill methane, afforestation incl. mangroves) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |
| Offset project registrants (March 2026) | Over 40 registered entities submitting projects (biogas, hydrogen, forestry) | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2243377&reg=3&lang=1) | 2026-11-12 |
| Approved offset sector groups | 10 groups listed (energy, industries, agriculture, waste, forestry, transport, fugitive, construction, solvent use, CCUS and removals) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| Indian Carbon Market portal launched | 21 March 2026, at Prakriti 2026 | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2243377&reg=3&lang=1) | 2026-11-12 |
| PAT scheme units moved to CCTS | 490 of 1,333 PAT units (7 of 13 sectors) became obligated entities in January 2026 | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |
| MRV framework published | July 2024 (Detailed Procedure for Compliance Mechanism) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Article 6 authority notified | 30 May 2022 (NDAIAPA, chaired by the Environment Secretary) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1900216) | 2026-11-12 |
| Activities eligible for Article 6 trading | 14 activities (mitigation, alternate materials, removals) under Article 6.2 and 6.4 | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2099131) | 2026-11-12 |
| India–Japan Joint Crediting Mechanism | Memorandum of Cooperation signed 7 August 2025 (Article 6.2) | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2191915&reg=48&lang=2) | 2026-11-12 |
| NDC goal the market supports | Cut emissions intensity of GDP by 45% by 2030 vs 2005 | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=1923458&reg=3&lang=2) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2010 | 12% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2014 | 21% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2016 | 24% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Emissions intensity of GDP vs 2005: 2019 | 33% lower | [Press Information Bureau (MoEFCC)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082528) | 2026-11-12 |
| Example target: Vedanta Jharsuguda Smelter II (aluminium) | 13.8878 tCO2e/t (2023-24 baseline) → 13.7232 (2025-26) → 13.2965 (2026-27) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Example: required cut by 2026-27 (Vedanta smelter) | 4.3% below baseline = (13.8878 − 13.2965) ÷ 13.8878 (f63) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Example target: JK Cement Muddapur (cement) | 0.4455 tCO2e/t (baseline) → 0.4440 (2025-26) → 0.4402 (2026-27), a 1.2% cut by 2026-27 (calc.) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Formula for credits issued / to buy | (target − achieved intensity) × equivalent output in that compliance year = CCCs (1 per tCO2e) | [Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency](https://beeindia.gov.in/WriteReadData/RTF1984/RTF-PDF-f0db112734284168_1776057153.pdf) | 2026-11-12 |
| Banking | Leftover CCCs carry into later compliance cycles; purchased CCCs may be used only for compliance | [Bureau of Energy Efficiency (BEE)](https://beeindia.gov.in/WriteReadData/L45218/7772386525993811.pdf) | 2026-11-12 |
| Institutions | Registry: Grid Controller of India; Administrator: BEE; trading regulator: CERC (3 bodies) | [Press Information Bureau (Ministry of Power)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2223703&reg=3&lang=1) | 2026-11-12 |
| Public budget for the scheme | 0 central allocation; costs met from fees and BEE's own resources (March 2025) | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2025/08/dfa7cb0482b658dcf571cbdf023c3fed.pdf) | 2026-11-12 |
| PAT outcome that CCTS builds on | 27.07 MTOE saved a year; about 115.21 MtCO2 avoided | [Ministry of Power](https://www.powermin.gov.in/static/uploads/2026/05/df68bc7bf21a7e46d1b01529930c137d.pdf) | 2026-11-12 |

## FAQ

**Has India's carbon market started trading?**

Not in the official records we read up to 12 November 2026. The Ministry of Power said in March 2025 that compliance trading is expected to begin in 2026-27, and BEE's trading procedure was still a draft in October 2026.

**How many companies must meet targets?**

490 obligated entities after January 2026: 282 from October 2025 and 208 added on 13 January 2026. The 282 is the first notification (G.S.R. 739(E), October 2025, four sectors); the 490 is the total the Press Information Bureau gave on 22 January 2026, after the 13 January notification added 208 entities in four more sectors. A June 2026 draft would add 255 iron and steel entities.

**Is it a cap-and-trade system?**

No. Each plant gets an emissions intensity target in tCO2e per tonne of product, not an absolute cap. Beating the target earns credits; missing it means buying credits equal to (achieved − target) × output.

**What is the penalty for missing a target?**

Environmental compensation equal to twice the average price at which credits traded in that compliance year, imposed by the Central Pollution Control Board and payable within 90 days.

**What is the price of an Indian carbon credit?**

There is no traded price yet. CERC's 2026 rules require trading within a floor and forbearance price band to be approved on a BEE proposal; we found no published band.

**Which sectors are covered?**

Aluminium, cement, chlor-alkali, pulp & paper, petroleum refineries, petrochemicals, textiles and secondary aluminium. Iron and steel targets are in draft. Thermal power plants were not moved into the scheme.

**Can projects outside these industries earn credits?**

Yes, through the offset mechanism. Nine methodologies are approved, such as grid renewables, hydrogen, landfill methane and afforestation, and over 40 entities were submitting projects in March 2026.

**How does India's scheme link to Article 6?**

A national authority set up on 30 May 2022 approves activities for international transfer; 14 activities are eligible. India signed a Joint Crediting Mechanism agreement with Japan on 7 August 2025.

## Not listed yet

- Carbon credit prices: no trade and no approved floor or forbearance price found.
- Total emissions covered by the 490 entities, in tonnes or as a share of national emissions: not stated in the official texts we read.
- Fertiliser targets: the sector was identified but no target schedule was found.
- Carbon Credit Certificate price (floor, forbearance or traded) — No CCC trade and no approved price band found in official texts read up to 12 Nov 2026
- Whether any CCC has been issued or traded — No official issuance or trading record found; latest texts describe procedures in draft (BEE, October 2026)
- Final iron and steel targets — Only the 26 June 2026 draft (G.S.R. 517(E)) was found; no final notification read
- Fertiliser sector targets — Listed among the 9 identified sectors, but no notified target schedule found
- Total emissions covered (MtCO2e or % of national emissions) — Not stated in the official texts read
- egazette.gov.in originals — Site refused the connection (certificate not trusted by our client); gazette copies hosted by BEE were used instead
- indiancarbonmarket.gov.in — Returned 403 to automated access; not bypassed