New Delhi: India is set to launch formal trading in its domestic carbon market within the next four months, marking a major step in its efforts to reduce emissions and strengthen climate action.
Union Power Minister Manohar Lal Khattar announced the timeline while speaking on the sidelines of the Bharat Electricity Summit 2026 in New Delhi. He said stakeholders will need to register under the scheme before taking part in carbon credit trading, ANI reported.
The proposed market will allow companies with surplus carbon credits to sell them to those that fall short of emission targets, creating a system that encourages compliance through financial incentives. “Those who have carbon certificates will be able to sell them, while those who do not will buy them to meet their obligations,” the minister said.
He noted that the initiative is part of a broader push to tackle rising emissions through both regulatory steps and market-driven mechanisms. Highlighting global concerns, he said temperatures have already risen by around 1.4 degrees Celsius compared to pre-industrial levels, with 2023 among the hottest years recorded.
India has committed to achieving net zero emissions by 2070 under the Paris Agreement and is expanding renewable energy capacity while strengthening policy frameworks.
According to ANI, as part of the compliance system, the government has set emission intensity targets for 490 entities from 2026. These companies will be required to cut their carbon footprint, with the carbon market offering flexibility to meet targets.
The minister also pointed to the success of the Perform Achieve and Trade Scheme, which has covered 1,333 industries and helped reduce carbon dioxide emissions by about 110 million tonnes while improving energy efficiency.
He added that measures such as smart metering, green open access, and time-of-day tariffs are being promoted to improve efficiency and boost renewable energy use. India aims to install 200 million smart meters as part of this effort.
Calling the carbon market a “national asset,” the minister said it would support innovation and entrepreneurship in clean technologies while strengthening the economy and environmental responsibility.
India has also been active in global climate discussions, including at COP28 and the G20 Summit, backing efforts to expand renewable energy capacity worldwide.
He said these initiatives would help position India as a key player in the global energy transition and support its long-term development goals.
