Carbon Credits for India's Ceramics and Glass Industry: Outside CCTS, Not Outside Carbon
India's ceramics and glass manufacturers are not obligated entities under the Carbon Credit Trading Scheme (CCTS). That does not make them carbon-free. The 2026 gas crisis in Morbi showed how exposed a kiln-heavy sector is to fuel, and every cubic metre burned is CO2 that will eventually be priced. This post covers where the sector stands under CCTS, whether CBAM touches it, how to size a credit volume for a tile or glass plant, and where credits are the wrong tool.
Is ceramics and glass an obligated sector under CCTS?
No. The GHG emission intensity targets notified through March 2026 cover nine sectors: aluminium, chlor-alkali, cement, fertiliser, iron and steel, pulp and paper, petrochemicals, petroleum refining and textiles. Ceramic tiles, sanitaryware and glass are not on the list. In practice this means:
No intensity target and no compliance deadline. A ceramic or glass unit has no obligation to surrender Carbon Credit Certificates (CCCs).
No shortfall penalty, but no compliance-market upside either. Units cannot earn surplus CCCs against a target they do not have.
The offset route stays open. A non-obligated unit can register an eligible project under the CCTS offset mechanism and sell the resulting CCCs to obligated buyers.
The scheme has already expanded its sector list once, and a sector that runs almost entirely on gas and propane is a natural candidate for a future round. Our CCTS guide explains how targets are set once a sector is designated.
What the 2026 gas crisis revealed about ceramic emissions
Morbi in Gujarat produces close to 90% of India's ceramic tiles and sanitaryware. Industry figures reported in August 2026 put the cluster at roughly 900 units consuming about 55 lakh SCM of propane a day plus another 25 to 30 lakh SCM of piped natural gas, with gas making up close to 40% of the cost of producing a tile. When supplies from West Asia were disrupted after March 2026, delivered gas prices moved from around Rs 48 per SCM to Rs 79 to 89 per SCM, hundreds of units halted production for a month or more, and the cluster's exports for April to June 2026 fell to about USD 184 million from USD 617 million a year earlier, a drop of roughly 70%.
The relevant point for a sustainability lead: fuel is the emissions. Using the IPCC default factor, natural gas emits roughly 2 kg of CO2 per SCM. A single plant burning 10,000 SCM a day therefore emits about 20 tonnes of CO2 a day, or close to 7,000 tonnes a year from kiln fuel alone. That is Scope 1 alone, before purchased electricity is added as Scope 2. See our Scope 1, 2 and 3 explainer for how these lines are drawn.
Does CBAM apply to ceramic tiles and glass?
Not today. The definitive phase of the EU Carbon Border Adjustment Mechanism, in force since 1 January 2026, covers cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. The European Commission's December 2025 proposal extends the scope to around 180 downstream iron, steel and aluminium products, but not to ceramics or glass. The direction of travel matters, though: full alignment with EU ETS sectors, which include glass and ceramics, is the stated longer-term goal, with the end of the decade widely cited as the horizon.
In the meantime, export-facing units already face anti-dumping duties of 50 to 100% in several markets and growing product-carbon-footprint requests from EU and UK buyers. A verified footprint, backed by a credible credit strategy for the residual, is a market-access asset today and a CBAM preparation exercise for later. Our CBAM guide for Indian exporters covers what importers will ask for.
How to size a credible credit volume for a tile or glass plant
Meter kiln fuel by type. Propane and PNG have different emission factors and different calorific values; a blended SCM figure will misstate the inventory.
Add Scope 2. Grid electricity for spray driers, mills, polishing lines and furnace boosting is a material second line.
Choose the claim before the volume. A carbon-neutral product range needs a product-level footprint; a corporate claim needs the whole site.
Abate first, at today's gas price. Kiln heat recovery to the spray drier, roller-kiln insulation and burner tuning cut the gas bill directly. At Rs 79 per SCM, efficiency has a stronger business case than any credit purchase.
Buy for the residual only. For a mid-size unit that is typically low thousands of tonnes a year. See current credit prices and the retirement process.
Where carbon credits are the wrong answer
Credits neutralise residual emissions you cannot yet abate. They do not solve three problems ceramic and glass makers often bring to us. They do nothing for CCTS compliance, because the sector has no obligation. They do nothing for the gas bill, which is a process-efficiency and fuel-switching question. And on their own they do not satisfy an EU buyer asking for a product footprint, where the verified number matters more than the offset behind it. Our note on offsetting versus insetting sets out when each is the right instrument.
Csquare works with Indian manufacturers to build the inventory, identify the abatement that pays back, and source verified carbon credits only for what is genuinely left. If you run a ceramic, tile, sanitaryware or glass plant and want a volume estimate from your own fuel data, talk to our team.
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