India’s ambitious commitment to reach net zero carbon emissions by 2070 has put carbon credit trading platforms at the forefront of its climate action strategy. These platforms are digital ecosystems designed to facilitate the buying and selling of carbon credits—certificates representing the reduction or removal of one tonne of carbon dioxide equivalent emissions. By leveraging technology, carbon trading platforms in India are driving transparency, efficiency, and broader participation in the nation’s low-carbon transition.
The Carbon Credit Trading Scheme (CCTS), established under the amended Energy Conservation Act 2022 and regulated by the Ministry of Power, underpins India’s carbon market framework. This scheme introduces both compliance and voluntary trading mechanisms: the compliance market covers energy-intensive industries with mandatory emission targets, while the voluntary market enables non-obligated entities, including SMEs and individuals, to participate and trade verified carbon credits. Platforms such as the Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and emerging players like Carbon Trade Exchange (CTX) and GreenX serve as key digital marketplaces enabling these trades.
These platforms offer user-friendly interfaces for registered entities to engage in carbon credit transactions, promoting innovation and offering financial incentives to reduce emissions. Incorporation blockchain technology is expected to significantly improve the security and transparency of transactions. By making carbon credits fungible and tradable, these platforms incentivize clean technologies, renewable energy projects, and sustainable practices, aligning economic growth with environmental sustainability and resilience.
However, challenges remain, including high compliance costs for smaller businesses, standardization of protocols, and the need for greater outreach to encourage wider participation. The government and stakeholders are actively addressing these issues through regulatory improvements and inclusion initiatives, aiming for an equitable and effective carbon market for all.
Thus, India’s carbon credit trading platforms are pivotal digital tools accelerating its green economy transformation. By facilitating efficient carbon markets, they provide a scalable pathway for businesses to meet their climate obligations while fostering investment in sustainable development—thus significantly boosting India’s journey toward its net-zero targets.