Carbon Credit Trading Scheme (CCTS) to Issue First Credits by October 2026

Key facts

• The Bureau of Energy Efficiency (BEE) announced that India will issue its first carbon credits under the Carbon Credit Trading Scheme (CCTS) in October 2026.
• The scheme consists of two primary components: a mandatory compliance component covering 800 units in nine sectors and a voluntary offset component.
• The BEE has already issued emission targets for approximately 490 units across seven sectors through notifications in October 2025 and January 2026.
• The initial phase of the carbon trading operations will exclude the steel and fertiliser sectors, despite them being among the most polluting industries.
• A dedicated portal for project registration and participation in the scheme is scheduled to be launched on 20 March 2026.
• The Ministry of Power (MoP) is overseeing the draft scheme, which aligns with global designs such as the European Union Emissions Trading System (EU ETS).
• The first cycle of targets for the 2025-26 financial year will conclude on 31 March 2026, followed by a seven-month period for verification, assessment, and issuance.
• Trading of the issued carbon credits is expected to take place between November 2026 and January 2027.