Indian carbon market advances verification as first credit issuance nears

India's carbon market is advancing through the verification of greenhouse gas emissions from obligated industrial entities, with carbon credit issuance expected as the next step, according to two carbon verifiers and a policy expert.

The Bureau of Energy Efficiency, which administers India's Carbon Credit Trading Scheme, published a list of 18 Accredited Carbon Verification Agencies empanelled under the scheme Oct. 16, as seen on its website.

"The current verification deadline is Oct. 31," Kirtesh Bagarecha, accredited energy auditor and CEO of Recon Energy Consultancy, one of BEE's verifiers, told Platts, a part of S&P Global Energy.

"Following the completion of verification activities, the audit reports will undergo detailed evaluation by the BEE, followed by the necessary regulatory procedures and issuance of Carbon Credit Certificates."

According to Bagarecha, because this is the first year of CCTS implementation, additional time may be required to complete the entire process. Recon is focused on emissions from the cement and textile units in the compliance market.

India has so far set binding greenhouse gas emissions-intensity targets for around 490 obligated entities across several industrial sectors under the compliance mechanism of its CCTS, according to a March government statement.

Initially, the government set targets for 282 entities in aluminum, cement, chlor-alkali, and pulp and paper in October 2025, before adding 208 entities in petroleum refining, petrochemicals, textiles and secondary aluminum in January 2026.

Verification underway

India issued the draft National Carbon Market plan in 2022 and has been engaged in multiple consultations with the industry. Government officials projected that commodity exchanges could start trading carbon credits by early 2027.

Arunabha Ghosh, an independent energy and climate policy expert, told Platts that implementation was progressing, with the issuance of carbon credits expected to be the next major step before trading begins.

"The CCTS is now live with binding targets... companies have now filed their compliance reports. The carbon credits are expected to be issued later this month," Ghosh said.

"The work on strengthening Measurement, Reporting and Verification — the backbone of the scheme — will continue."

Bhavesh Vasiyani, manager, energy transition, sustainability services, South Asia Region at Bureau Veritas (India) Pvt. Ltd., another BEE-appointed verifier, told Platts the emissions-intensity targets currently being verified will be reviewed by BEE.

"Currently, the targets are being verified. Once it is completed, these reports will be reviewed by BEE. There will be multiple filters of verification," Vasiyani said.

Bureau Veritas, operating in both the compliance and offset markets, has been accredited to verify emissions of companies in cement, iron and steel, petrochemical and petroleum refinery, according to BEE.

UK recognition

Efforts to strengthen the CCTS's measurement, reporting and verification framework are also continuing as India's carbon-pricing system gains international recognition.

"The UK recognizing India's CCTS as a qualifying carbon pricing mechanism has given it some boost and an equivalency has to be established," Ghosh said.

"Indian exporters can claim carbon pricing relief from January."

The UK recently recognized India's CCTS as a qualifying overseas carbon-pricing scheme under its Carbon Border Adjustment Mechanism, which takes effect on Jan. 1, 2027.

That means UK importers of eligible Indian goods may claim carbon-price relief for an effective carbon price already borne under the CCTS, subject to the UK's evidence and verification requirements, according to Ghosh.

India's domestic CCTS transitions older efficiency programs, such as the Perform, Achieve and Trade scheme, into a national carbon trading system, UN Environment Program's Emissions Gap Report 2026 issued Oct. 21 noted.

"It is set to initially cover over 700 million mtCO2e, placing India among the world's largest emissions trading schemes."