If someone told you that clean air, healthy forests and renewable energy can be traded like shares in the stock market, would you believe it? That is exactly what the carbon credit market is all about. For India, which is chasing rapid growth while also promising net zero by 2070, carbon credits are not just financial tools. They are a bridge between development and sustainability.
What is a Carbon Credit?
A carbon credit in simple words is a certificate for reducing or removing one tonne of carbon dioxide equivalent from the atmosphere. Companies can buy these credits to compensate for emissions they cannot cut immediately. Think of it as paying rent to the planet until you build your own house of sustainability.
Carbon Credit Market in India
The carbon credit market in India is evolving quickly. Until now, most credits were issued under voluntary global standards like Verra and Gold Standard. But now the Government of India has launched the Carbon Credit Trading Scheme (CCTS) to create a domestic compliance market along with a voluntary framework. This is a game-changer because it gives India more control, sets up a national registry and prepares Indian industries for international rules like the EU’s Carbon Border Adjustment Mechanism (CBAM).
Why is this Important?
- Control and Credibility: With global scandals around low-quality credits, India wants a transparent system where every credit is backed by real climate action.
- Economic Signalling: By putting a price on carbon, Indian companies will learn to value efficiency and clean energy.
- Local Benefits: Carbon credit projects in India can create rural jobs, protect biodiversity and improve water security while reducing emissions.
The Challenges Ahead
The promise of carbon credit India is big, but there are real challenges.
- Integrity and Additionality: Are the emission cuts really additional, or would they have happened anyway?
- Double Counting: If both the project owner and the credit buyer claim the same reduction, credibility collapses.
- Price Discovery: Without active trading platforms, prices remain unstable. India needs liquid exchanges.
- Export Competitiveness: With CBAM coming into force, Indian exporters must have credible carbon accounting or risk losing market share.
- Community Rights: Projects must protect local communities and ecosystems. Ignoring them will backfire.
IMPCA’s Perspective as a Carbon Offset NGO in India
At IMPCA, we believe credibility is everything in the carbon credit market. We are on the ground, planting trees at scale, restoring degraded lands and registering projects that are compatible with both CCTS and global standards. Our model is built on three pillars:
- Integrity First: We use conservative baselines, remote sensing, ground audits and publish data transparently.
- Community Co-benefits: Every project creates jobs, builds skills and ensures local participation. We see communities as partners, not beneficiaries.
- Market Readiness: We align our credits to be valid in India’s compliance market under CCTS and acceptable in voluntary markets for corporates.
Carbon Credits for Corporates
For companies, the message is clear. Start measuring emissions across Scope 1, 2 and 3. Reduce wherever possible, and for the rest, buy high-quality carbon credits from trusted partners. Carbon credits for corporates are not a license to pollute, they are a bridge to a low-carbon future. Early movers will also be better prepared for carbon pricing and export-related carbon taxes.
Closing Thoughts
The carbon credit market in India is at an exciting crossroads. If designed with transparency and strong verification, it can unlock billions in green finance and create sustainable livelihoods. If designed poorly, it will become another case of greenwashing. IMPCA is committed to the former, combining field-level projects with digital traceability to deliver impact that both corporates and the planet can trust.
Want to know more? Partner with IMPCA to design your carbon strategy, buy credible offsets, and invest in projects that create both climate and community value.