Trading carbon: An efficient market can enable India's green transition

Other than meeting India's climate objectives, the domestic carbon market has profound implications for the country's export competitiveness

Ahead of the 30th Conference of Parties (COP) next month in Belém, Brazil, India is set to operationalise its Carbon Credit Trading Scheme (CCTS) by the end of October and join the United Nations-supervised voluntary carbon market from January, marking a turning point in climate governance. Despite its lower historical emission, India’s policies are among the most ambitious, especially its commitment of 500 gigawatt of renewable capacity by 2030 and the target of net-zero by 2070. The first phase of the CCTS will target industries such as aluminium, cement, and pulp and paper, covering 282 units that also include large