Category: Journal

India’s Carbon Credit Trading System (CCTS) Explained- How to Navigate the New Indian Carbon Market in 2025

1. Why Another Carbon Market- and Why Now?

India’s greenhouse-gas (GHG) emissions still trail those of China and the US on a per-capita basis, but its overall share is climbing fast. To square rapid industrial growth with its updated Nationally Determined Contribution—45 % emissions-intensity cut by 2030 and net-zero by 2070—New Delhi is rolling out a two-tier carbon market: a compliance mechanism for big emitters and a voluntary offset window for everyone else. That umbrella framework is called the Carbon Credit Trading System (CCTS).

Global politics add urgency. From 2026 the EU’s Carbon Border Adjustment Mechanism (CBAM) will slap tariffs on carbon-heavy imports; Indian exporters risk losing price advantage unless they can prove decarbonization. The CCTS provides a domestic price signal and an internationally credible emissions ledger.

2. The Legislative Backbone: 2022–2025 in Fast-Forward

3. Who Regulates What?

– Ministry of Power (MoP) – overall custodian of the Indian Carbon Market (ICM).

– Ministry of Environment, Forest & Climate Change (MoEFCC) – notifies legally binding intensity targets under the Environment Protection Act.

– Bureau of Energy Efficiency (BEE) – administrator: sector analysis, target calculation, issuance of Carbon Credit Certificates (CCCs).

– Grid Controller of India (GCI) – runs the registry.

– Central Electricity Regulatory Commission (CERC) – licenses power exchanges and sets trading rules. Draft CERC regulations allow CCC trading on any recognised exchange; OTC deals remain barred for now.

4. Scope and Coverage: Phase 1 (FY 2026)

– Nine PAT-sectors migrate first: aluminium, chlor-alkali, cement, fertiliser, iron & steel, pulp & paper, petro-chemicals, petroleum refining, textiles.

– ~800 facilities above PAT thresholds expected.

– GHGs: CO₂ and PFCs initially.

– Metric: sector-specific emissions-intensity (t CO₂e / unit of product).

– Compliance cycle: annual reporting, three-year rolling targets.


Voluntary Window

Parallel rules enable non-covered sectors—agriculture, forestry, resi-buildings, green hydrogen—to register projects and generate CCCs. Renewable-energy credits formerly traded in the REC market can migrate once methodologies are approved.

5. How the Compliance Mechanism Works

  1. Baseline & Target Setting
    BEE calculates each sector’s trajectory factoring technology potential, historic energy data and 2023-24 emissions. Draft benchmarks for 2025-27 are open for comment until late July 2025.

  2. Monitoring & Verification (MRV)
    Gate-to-gate coverage of Scope 1 & 2 emissions; some Scope 3 (intermediate product trade) included. Entities must submit a verified GHG report within 4 months of FY close. Non-compliance triggers financial penalties under the Energy Conservation Act.

  3. Issuance of CCCs
    Over-achievers earn one CCC per tonne of CO₂e saved vs. target. Under-performers must buy and surrender CCCs.

  4. Trading
    Trades occur on power exchanges (IEX, HPOWERT, PXIL) under CERC oversight. No derivatives or short selling in phase 1; unlimited banking but no borrowing.

6. Timeline to First Trade- Reality Check

While initial MoP roadmaps imagined first trades in April 2025, institutional delays mean mid-2026 is more realistic, according to recent statements by the Power Minister. Petroleum-Economist analysis even warns of slippage into late 2026 if registry testing drags.

7. PAT to CCTS: What Changes for Industry?

Issue PAT (2012-24) CCTS (2025-on)
Instrument ESCerts (energy savings) CCCs (GHG reductions)
Coverage 13 sectors Initially 9 sectors (expandable)
Metric Energy/mass GHG tCO₂e/unit
Trading venue Power exchanges Same, but stricter MRV & penalties
Banking Limited across cycles Unlimited within compliance mechanism

PAT experience gives firms a head-start on data systems, but emissions accounting demands fuel-specific NCVs, process-emissions factors and third-party verification—a leap in complexity.

8. The Voluntary Crediting Piece: New Money for New Sectors

On 28 March 2025 the MoP green-lit eight methodologies—including mangrove afforestation and green hydrogen—under a domestic offset mechanism. Expect full guidelines by Q4 2025 and trading once registry APIs integrate project issuances. That opens doors for:

  • Agro-forestry & Soil Carbon projects—big rural job creators.

  • Distributed clean-cooking (ICS) roll-outs.

  • Digital MRV providers (remote sensing, blockchain).

9. What This Means for Corporates

Compliance Entities

  1. Model your intensity gap now using 2023-24 GHG data.

  2. Identify least-cost abatement (heat-recovery, fuel switch, electrification).

  3. Set up registry & exchange accounts early; auction windows may be thin.

  4. Budget for carbon price volatility; analysts expect ₹600-₹1 200 /t ($7–14) in phase 1.

Non-Covered Players

  1. Scout eligible project types (RE, hydrogen, mangroves, cookstoves).

  2. Register early to benefit from first-mover credit scarcity.

  3. Bundle small projects—volume matters for liquidity.

10. Challenges Nobody Should Ignore

Risk Details Mitigation
MRV capacity gap India has <250 accredited verifiers; ~800 plants need annual audits. Outsource to global auditors; build domestic capacity quickly.
Price discovery Single-commodity exchanges could see thin volumes, wide bid-ask spreads. CERC exploring market-maker role, but clarity pending.
Overlaps with REC/RPO, HPO Firms could face multiple, sometimes conflicting, certificate obligations. Government promised harmonisation, but rules still in draft.
CBAM alignment EU may not recognise intensity-based credits. Seek bilateral equivalence or use CCTS as step toward absolute caps post-2030.
Data fraud High stakes may tempt mis-reporting. Blockchain registry pilots, AI-based anomaly detection (where firms like Anaxee can add value).

11. Strategic Playbook for 2025–27

  1. Map Exposure: Quantify both compliance burden and offset opportunity.

  2. Invest in Data Infrastructure: Digital MRV will be a licence to operate.

  3. Engage Policy Consultation: Target-setting drafts are live; lobby for realistic baselines.

  4. Train Teams: Carbon accounting skills are scarce—build them in-house or partner.

  5. Communicate: Investors increasingly price transition plans—use the CCTS narrative to showcase readiness.

12. Looking Ahead

India’s CCTS is not a quick copy-paste of the EU ETS; it’s an intensity-based hybrid tuned to India’s growth trajectory. The upside? Flexibility and political feasibility. The downside? Complexity and a risk of weak price signals if targets are soft. 2025-26 will be the shakedown period. Early movers—either reducing emissions or minting high-integrity credits—stand to lock in low-cost advantages before the scheme tightens post-2030.

For companies that treat carbon management as a side-desk issue, CBAM and domestic penalties will be an expensive wake-up call. For those who treat CCTS as a strategic lever, it’s a chance to turn carbon compliance into competitive edge—and, with the right partners, an entirely new revenue stream.

Planning or Executing a Carbon Project? Need help with consultation or implementation? Connect with Anaxee at sales@anaxee.com

Field Worker Sapling nursery agroforestry carbon project in India

References

ICAP ETS Database, “Indian Carbon Credit Trading Scheme” (July 2024 update) icapcarbonaction.com
Hindustan Times, “Govt notifies draft carbon rules for industries” (1 July 2025) hindustantimes.com
Press Information Bureau, “Carbon Pricing in India: Market Mechanisms for Climate Leadership” (23 June 2025) pib.gov.in
LinkedIn Article, A. Sheikh, “India’s CCTS: Policy in Motion” (26 Jun 2025) linkedin.com
SolarQuarter, “India Proposes New Emission Intensity Targets Under CCTS 2025” (26 Jun 2025) solarquarter.com
Economic Times Energy, “India to launch carbon market by 2026” (22 Feb 2025) energy.economictimes.indiatimes.com
CERC draft regulations summary, Mercom India (Nov 2024) mercomindia.com

Where to Register Your Carbon Project in India: Verra, Gold Standard, CarbonSink, CCTS & Other Key Registries

Carbon Projects in India

 

India’s net-zero deadline of 2070 has triggered an unprecedented appetite for high-quality carbon credits. Whether you’re a project developer planting agroforestry bunds in Madhya Pradesh, an NGO rolling out improved cookstoves in Bihar or a corporate CSR team exploring biochar, choosing where to register your project is now a strategic decision that can make or break financing, credibility and long-term impact.

This article guide walks you through the leading carbon registries accepting Indian projects, compares their rules, costs and timelines, and flags the legal nuances you should address before filing. If you’re new to the carbon market, treat this as a practical roadmap- no jargon, just the facts (with sources).

Why Registration Matters: 

– Credibility & Market Access – Buyers, especially multinational corporates under science-based targets, demand credits issued by recognized registries.

– Avoiding Double Counting – A registry tracks issuance and retirement, ensuring the same tonne of CO₂e isn’t sold twice.

– Methodology Integrity – Robust methodologies protect against headline-risk (e.g., mis-labelled REDD+ vs. soil projects).

– Price Premiums – Credits from well-known registries typically trade 10-40 % higher than those from unknown or purely local systems.

 

Meet the Major Registries Accepting Indian Projects: 
1.  Verra:

Verra’s VCS is the largest voluntary registry globally, covering >1 900 projects and ~1 billion credits issued.
Key points:

– Project Types: Afforestation/Agroforestry, IFM, Soil Carbon, Biochar, Renewable Energy, Methane Abatement, Plastic Recovery, more.

– Relevant Methodologies: VM0047 (Agroforestry in Smallholder Bunds), VM0042 (Biochar), VM0049 (Rice), among others.

– Fees & Timelines: – Pipeline listing: USD 1 000, Registration fee: USD 2 000 (single methodology) / 3 000 (multi-method), Typical first issuance timeline: 12-18 months, depending on validator capacity.

– Strengths: Deep buyer pool, compatibility with CORSIA, extensive methodology library.

– Watch-out: Higher document rigor; expect multiple rounds of clarifications with the validator.

 

2. Gold Standard for the Global Goals: 

Gold Standard logo


Gold Standard (GS) positions itself as the premium label for SDG co-benefits.

Project Types: Cookstoves, Clean Water, Renewable Energy, Land Use & Forests, Waste Management.

Methodologies: e.g., GS TeV Method for cookstoves, Afforestation/Reforestation for biodiverse plantations.

Fees & Timelines:

– Account opening: Free
– Registration fee: 0.20 USD/t CO₂e (payable at first issuance)
– Annual administration fee: 0.04 USD/t CO₂e
– Typical lead time: 12 months for simple projects; 18-24 months for complex land-use activities.

Strengths: Strong brand among European buyers; explicit SDG impact tracking.

Watch-out: Revenue share per credit can be hefty for high-volume projects.

3. CarbonSink – Global Biochar & EBC C-Sink

Carbon Standards International’s C-Sink family certifies long-term carbon sequestration in biochar and related products.

Global C- SInk Logo

Project Types: Biochar production & application, enhanced rock weathering, other durable sinks.

Methodologies: Global Biochar C-Sink v1.0 (2024), plus European Biochar Certificate (EBC) rules.

Fees & Timelines:

– Audit prep & report: €150 / hour
– Retirement fee: €0.10 – 0.30 per t CO₂e, depending on permanence class.

Typical first issuance: 9-12 months if feedstock traceability is well documented.

Strengths: Rewards long-term storage (>100 yrs), rising demand from tech firms seeking removal credits.

Watch-out: Niche buyer pool; project must pass strict life-cycle analysis on permanence.

4. India’s Carbon Credit Trading Scheme (CCTS) & the ICM Registry

 


In July 2024 India notified rules for a compliance Carbon Credit Trading Scheme (CCTS) under the Bureau of Energy Efficiency (BEE) and CERC. An electronic Indian Carbon Market (ICM) Registry will issue tradable Carbon Credit Certificates (CCCs).

Project Types (Phase I): Energy efficiency and renewable energy in hard-to-abate sectors.

Planned Phase II: Agriculture, forestry and waste projects once sectoral baselines are set.

Validation & Verification: Must be done by an Accredited Carbon Verification Agency (ACVA)—India-specific equivalent of a VVB.

Fees: Not yet public; draft consultation hints at minimal filing charges and market-based transaction fees.

Strengths: Mandatory demand from Indian corporates once compliance phases kick in; lower forex exposure.

Watch-out: Still evolving; methodologies and trading platform not fully live as of July 2025.

5. Other Emerging or Niche Registries Accepting Indian Projects

Registry USP Typical Indian Use-Case Notes
Global Carbon Council (GCC) CORSIA-eligible; strong Middle-East buyer base Renewable energy, waste heat recovery Updated fee schedule effective Feb 2025 (globalcarboncouncil.com, globalcarboncouncil.com)
American Carbon Registry (ACR) Early mover on soil & rice methodologies Regenerative ag in north-east India Credits highly valued in US markets
Climate Action Reserve (CAR) Rigorous North-America protocols Methane capture from landfills Few Indian projects so far, but open
Plan Vivo Community-centred forestry Smallholder agroforestry in tribal belts Lower fees; heavy focus on livelihoods

(ACR, CAR, Plan Vivo information from publicly available registry websites and issuance statistics; no paywalled data cited.)

Head-to-Head Comparison

Registry Project Types Supported Methodology Depth Geographic Focus Validation & Verification Indicative Costs SDG / Co-benefit Tags
Verra (VCS) Forestry, Agriculture, Energy, Waste, Plastic 100+ approved methodologies; updates quarterly Global Accredited VVB + Verra desk review USD 3 000 reg. + 0.10 USD/t issuance fee; 12-18 mths to first credit Optional SDG tagging
Gold Standard Energy Access, Land Use, Water, Cities ~40 methodologies, all SDG-mapped Global Gold-Standard-approved VVB + GS secretariat check 0.20 USD/t reg. + 0.04 USD/t annual; 12-24 mths Mandatory SDG reporting
CarbonSink (C-Sink) Biochar & long-term sinks 2 permanence tiers; ISO-based MRV Global 3rd-party auditor + Carbon Standards Int. review €150/h audits + €0.10–0.30 t retirement; 9-12 mths Durable removal, soil fertility
CCTS / ICM Registry Energy (Phase I), AFOLU (Phase II) Govt-drafted sectoral baselines India only ACVA + BEE oversight TBD (draft indicates low filing fee); issuance linked to trading cycles National SDG alignment
GCC Energy, Waste, Blue Carbon ~30 methodologies; CORSIA eligible Global (Middle-East focus) IAF-accredited VVB + GCC QA USD 1 000 account + issuance fee tiers; 10-14 mths SDG & Islamic finance lens

Citations for cost data: Verra, Gold Standard, CarbonSink, GCC tables above.

Practical Checklist Before You Fil

– Clarify Ownership & Title
Land leases, tree usufruct rights and biomass feedstock contracts must align with registry rules on carbon title.

– Document Additionality Early
Capture baseline evidence (satellite, invoices, soil tests) before activities start. Verra and Gold Standard invalidate projects launched prior to listing except under strict “expedited listing” clauses.

– Pick the Right VVB
India hosts <15 VVBs accredited for land-use projects. Early booking can cut validation waits from six months to three.

– Build In Permanence Buffers
Forestry projects typically contribute 10-20 % of credits to a non-tradable buffer. Budget this into your financial model.

– Mitigate Double Counting
If you opt for CCTS later, ensure any voluntary credits are correspondingly adjusted under Article 6 to avoid invalidation.

– Understand Timeline–Cashflow Trade-offs:
   Verra: Faster if you choose an “existing methodology” (avoid new methodology development unless budget >USD 100 k).
   Gold Standard: Slower, but SDG premium can fetch +USD 2–3/t.
   CarbonSink: Quicker crediting (removal projects) but smaller buyer base

– Factor FX and Transaction Costs: Paying USD fees from an INR account? Lock FX rates or use multi-currency wallets; even 2 % fluctuations can wipe margins.

– Align with CSR & ESG Goals: Corporates funding your project may prioritise SDG co-benefits (education, gender). Registries differ in how well they document these impacts.

Conclusion & Next Steps:
– Registering a carbon project in India is no longer a one-size-fits-all decision.
– Verra delivers scale and liquidity—ideal for large agroforestry or renewable portfolios seeking international buyers.
– Gold Standard suits community-centric cookstove or water projects chasing premium SDG pricing.
– CarbonSink is the specialist route for durable removal credits such as biochar.
– CCTS / ICM will soon be unavoidable for compliance-driven domestic demand, offering a home-market hedge against FX risk.

Before choosing, map your project’s size, credit vintage, co-benefit story and buyer profile. And remember: the cheapest registry fee isn’t always the lowest total cost once timelines, buffers and marketing premiums are factored in.

Need a Consultation or Implementation Partner for your Carbon Project in India Connect with us at sales@anaxee.com

Field Worker Sapling nursery agroforestry carbon project in India

 

Anaxee’s Swaraksha Film Selected In Indian Film Festival Stuttgart 2023

Germany | July 2023

Indian Film Festival Stuttgart is one of Central Europe’s biggest film festivals. Anaxee’s Swaraksha Film will be screened along with Shahrukh Khan & Manoj Bajpayee movies at the Indian Film Festival on 20 July 2023 in Stuttgart, Germany.

Swaraksha Impacted 3 Million People In Rural India

Swaraksha spearheaded by Anaxee, is a social project that has the power of uplifting the lives of those in need. Under the Swaraksha project, Anaxee started India’s largest Covid 19 awareness program for rural India.

More than 30 Lakh people have been counseled by Anaxee’s Digital Runners, and more than 20 Lakh vaccinations have been done in more than 13,000 villages in India. It is truly a large number and it shows what Anaxee Digital Runners have done to make India vaccinated and a Covid-19 free nation.

This project helped in demonstrating how a large distributed human network equipped with the right technology can help in solving any kind of problem in rural India.

Inspired by Anaxee’s Project Swaraksha, a film has been made, that shows the vision, ambition, and need for the Swaraksha project. The film was produced by Priyanka More, a National Award Winner film producer. Priyanka won the Best Film award in the social issues category at the 67th National Film Awards.

In a world where we often find ourselves immersed in fictional narratives, this film dares to delve into a real story of a project that empowers rural citizens. The film shows how Anaxee Digital Runners reached the underserved through Project Swaraksha.

Anaxee believes that if we provide the ‘Swaraksha’ to the rural community of India then India will get more protected both internally & externally.

Through Project Swaraksha, Anaxee shows the world that by embracing a tech-enabled approach and leveraging a last-mile feet-on-street model every problem can be solved in every corner of this big country.

Swaraksha – Digital Runner Film has recently got selected for Indian Film Festival, Stuttgart (Germany). The film will be screened at Downtown Cinemas Stuttgart on Thursday, 20 July 2023 at 4:00 PM along with some major Indian films.

Project Swaraksha - Digital Runner Short Film
Project Swaraksha – Digital Runner Short Film

On this big achievement, let’s congratulate Anaxee and its thousands of Digital Runners who brought rays of hope to those who needed it the most.

Project Swaraksha in a Glimpse-

01 Project
250+ Districts Covered
10,000+ Digital Runners Deployed
13,000+ Villages Covered
20,00,000+ Confirmed Covid-19 Vaccinations
30,00,000+ People Counseled

To know more about Project Swaraksha- Click Here