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India may soon start its first carbon-trading programme

February 25, 2026

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Business Standard

India is in the final stage of kickstarting its first ever comprehensive carbon-trading programme to report on emission generated by participating industries, according to a top official of the Bureau of Energy Efficiency (BEE).

- S DINAKAR

This will be for April 2025-March 2026 with interviews for verifiers in progress. But steel, the most polluting industry, is yet to find a place in the first phase of operations; neither is the fertiliser sector. Their inclusion was proposed to cover 800 units, responsible for nearly all of India’s industrial emission.

Denying reports that the “Carbon Credit Trading Scheme” is delayed, Saurabh Diddi, director, BEE, told Business Standard on the sidelines of “Mumbai Climate Week’ that the body had issued emission targets for around 490 units, covering seven sectors, through two notifications, in October 2025 and January 2026.

(The power sector, India’s biggest overall polluter, is not part of the scheme.)

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