Carbon markets are becoming a new and significant economic avenue as India transitions to a greener economy. With the upcoming launch of India’s own Carbon Credit Trading Scheme by 2026, it has set the precedent for businesses to look at their climate impact closely. Companies have the advantage of a competitive edge in both domestic and international markets by integrating carbon accounting in India and leveraging the upcoming carbon market to position themselves ahead of the curve.
The market for carbon credits serves as a financial tool to encourage companies to cut emissions. By reducing their greenhouse gas (GHG) emissions or funding environmentally friendly initiatives like afforestation or renewable energy, businesses can obtain carbon credits, which can help them increase their profitability and goodwill in the market. Hence, this monetary incentivisation to pursue and accomplish sustainability goals can help both the society and the market to grow by trading these credits in regulated marketplaces.
India’s Green Credit Program, announced in 2023, further accelerates this shift, aiming to encourage sustainable business practices while aligning with global carbon pricing mechanisms. With the launch of the Indian Carbon Market (ICM), businesses will be required to track and manage their emissions systematically.
Why Indian Businesses Must Prepare for the Carbon Market
For India, to tap into this new market segment of carbon credits, carbon accounting is a stepping stone. For any organization that wants to benefit from the market, they will first have to start with its own carbon footprint mapping- i.e. they will be expected to measure and report their current carbon emissions.
Businesses that adopt carbon accounting as a measure can benefit from the booming climate economy internationally and also stand an improved chance of greater visibility, securing more funding and having greater influence in the market.
The global carbon market is expected to reach $100 billion by 2030, and India’s share will only grow if businesses proactively engage in carbon accounting and emissions management.
Why Businesses Need to Start Carbon Accounting Now
1. Global Trade Access
When a business does carbon accounting in India, it will be able to take advantage of the carbon credit system. This makes the business ready for global trade while cutting down on possible carbon-based taxes, as seen by the EU’s Carbon Border Adjustment Mechanism (CBAM). This will be particularly relevant for export-oriented industries like steel, cement, and chemicals because non-compliant companies risk trade obstacles.
Tata Steel has already started monitoring its emissions in order to secure its place in international markets and ensure compliance with CBAM and other international carbon laws.
2. Cost Saving and Risk Mitigation
Carbon accounting in India directly lowers operating costs by identifying areas for emission reduction and energy inefficiency. Future carbon fees or increased operating expenses may be imposed on businesses that do not monitor their emissions.
Since 2005, ITC Limited has cut emissions intensity by 58% through its carbon management plan, which has resulted in decreased energy prices.
3. Attracting Investments and Enhancing Brand Value
It is no secret that sustainable businesses with transparent carbon footprint management attract more investors, customers, and partnerships. For Indian firms, it is an economic potential because businesses that support sustainability are benefiting from improved legislative incentives, more investor confidence, and improved market positioning as the global drive toward decarbonization picks up speed. By 2030, the Indian carbon market alone is expected to grow to $10 billion, establishing a whole new financial environment where companies may use carbon credits to profit from their emission reductions. By taking action today, businesses doing carbon accounting in India may obtain an early-mover advantage and incorporate sustainability into their supply chains and core operations before it becomes an inevitable expense.
Reliance Industries has committed to becoming a net-zero company by 2035, attracting global investors and positioning itself as a leader in sustainable energy.
How TSC’s NetZero can help Carbon Accounting in India?
As Indian businesses prepare to tap into the $10 billion carbon market, maintaining an accurate and compliant carbon accounting system is no longer optional—it’s a strategic necessity. Businesses need precise carbon footprint measurement and transparent reporting to tap into carbon market which cab be done by investing in the right carbon accounting software ensuring accuracy, compliance, and a competitive advantage in this fast-growing market.
TSC NetZero offers a comprehensive carbon accounting solution that helps businesses track, audit, and manage Scope 1, 2, and 3 emissions in accordance with GHG Protocol and PACT guidelines. The platform simplifies emission reporting with automated data collection, real-time monitoring, and in-depth analytics, ensuring businesses not only meet compliance standards but also maximize the financial opportunities of the carbon market. By leveraging TSC’s robust carbon accounting framework, companies can confidently participate in carbon credit trading, attract sustainability-focused investors, and strengthen their ESG positioning, all while contributing to India’s broader net-zero vision.
