As the world prepares for COP30 in Belém, Brazil, in 2025, the urgency of climate action has never been greater. COP30 represents not only a critical inflection point for global negotiations but also a pivotal opportunity for India to fast-track its climate ambition through robust carbon markets and the adoption of cutting-edge technologies such as digitally verified carbon offsets. This World Environment Day, as we reflect on environmental stewardship, it is essential to examine how India can shape and benefit from these evolving global mechanisms.
India remains one of the few major economies whose emissions trajectory is broadly aligned with its fair share under the Paris Agreement, despite its lower historical emissions and ongoing development needs.
In July 2023, India formally launched the Carbon Credit Trading Scheme (CCTS). This compliance carbon market builds upon the successes of the Perform, Achieve and Trade (PAT) scheme, but unlike PAT, the CCTS opens the door for trading emission reduction certificates beyond the power and industrial sectors.
Experts estimate that India’s carbon market could unlock a $200 billion opportunity by 2030, combining domestic growth with environmental integrity. Sectors like steel, cement, transport, and even agriculture are expected to come under its ambit, allowing Indian industries to earn credits by exceeding efficiency norms and trade them within a national or international carbon market.
While carbon pricing is still nascent in India, the International Carbon Action Partnership (ICAP) has acknowledged the country’s proactive steps as exemplary among developing nations.
The credibility of carbon markets hinges not merely on the volume of credits traded but on their integrity, traceability, and impact. Traditional Monitoring, Reporting and Verification (MRV) mechanisms are often paper-heavy, delayed, and susceptible to manipulation. In this context, Digitally Verified Carbon Offsets (DVCOs) are emerging as a transformative solution. DVCOs use blockchain, satellite imagery, remote sensing, and machine learning to validate emissions reductions in real time.
Carbon governance
The climate agenda at COP30 will largely hinge on the operationalisation of Article 6 of the Paris Agreement, particularly Article 6.2 and 6.4, which govern the framework for international carbon trading and the Sustainable Development Mechanism respectively.
India, as a major emitter and a developing economy, is expected to play a pivotal role in shaping these dialogues. Aligning India’s domestic carbon market with Article 6 mechanisms could unlock access to global finance, particularly through Internationally Transferred Mitigation Outcomes (ITMOs). These allow countries or companies to buy high-quality credits from India to offset their own emissions, thereby channelling funding into Indian climate projects, especially those involving rural communities, biodiversity preservation, or green infrastructure.
Moreover, India’s presidency of the G20 in 2023 and continued participation in coalitions such as the International Solar Alliance and the Leadership Group for Industry Transition (LeadIT) underscore its diplomatic clout in climate matters.
India must also seize the opportunity to press for climate finance reform at COP30. While developed nations agreed to mobilise $100 billion annually by 2020, the promise remains largely unmet — projections suggest that developing countries will need at least $1.3 trillion annually by 2035 to meet their climate goals. India can lead the call for improved financial flows, concessional loans, and blended finance instruments, ensuring that carbon markets do not replicate historic inequities.
Tuhin is National Spokesperson, BJP, and Kaviraj is Executive Director and CEO, Earthood