The Clock is Ticking: Is Your Business Ready for India's New Carbon Mandate?

For years, sustainability in Indian industry was largely voluntary—a "good to have" feature for corporate reputation. That era is officially ending. With the introduction of the Carbon Credit Trading Scheme (CCTS), decarbonization is no longer just a corporate social responsibility goal; it is a legal necessity.

As we approach the start of the first compliance period, here is everything you need to know about the mandate, the risks of inaction, and how to secure your future in the Indian Carbon Market (ICM).

1. The New Reality: Mandatory Targets Begin FY 2025-26

The CCTS, established under the Energy Conservation (Amendment) Act, 2022, has introduced legally binding Greenhouse Gas Emission Intensity (GEI) targets. These targets are not voluntary guidelines; they are strict mandates.

• The Timeline: The first compliance period officially commences in Financial Year 2025-26.

2. Who is on the "Obligated" List?

The government has designated over 460 industrial units as "obligated entities". If your business operates in one of the following key sectors, this regulation likely applies to you:

• Aluminium, Cement, and Chlor-Alkali

• Pulp & Paper, Steel, and Petroleum Refining

• Petrochemicals

Your specific GEI targets are calculated based on your baseline emissions from FY 2023-24, determining the emission intensity per unit of output you must achieve.

3. Understanding "Compliance Deficit"

The mechanism of the CCTS is straightforward but strict. If your facility's actual GEI exceeds its mandated target, you will face a "compliance deficit".

To rectify this deficit, you cannot simply pay a fine and move on. You are legally required to purchase and surrender an equivalent number of Carbon Credit Certificates (CCCs) from the Indian Carbon Market (ICM).

4. The Cost of Non-Compliance

Ignoring this mandate carries significant financial risk. Proactive compliance is key to avoiding Environmental Compensation penalties, which can be as high as twice the market price of the Carbon Credit Certificates (CCCs) you failed to buy.

5. The Solution: Seamless Compliance with C²

Navigating this new market can be complex, but sourcing your credits shouldn't be. C² (Csquare) streamlines the CCTS compliance process for obligated businesses.

• Direct Connection: C² connects you directly with high-quality, verified carbon credits generated by Indian farmers, Farmer Producer Organizations (FPOs), and environmental projects.

• Transparency: Using a blockchain-powered platform, C² ensures that every CCC you acquire is transparent, traceable, and impactful.

The Bottom Line:

The transition to a sustainable India is underway. By assessing your GEI obligations now and partnering with transparent platforms like C², you can ensure seamless compliance, fulfill your legal mandates, and invest in a greener future.