In this episode of EY India Insights, Kapil Bansal, Partner – Energy Transition and Decarbonization at EY‑Parthenon India, explores how India’s newly launched Carbon Credit Trading Scheme (CCTS), under the Energy Conservation Act 2022, is set to reshape the country’s decarbonization pathway. He explains how the scheme allows organizations to trade carbon certificates based on verified emission reductions — rewarding companies that exceed emission‑reduction benchmarks and requiring those that fall short to purchase credits. Kapil also highlights how CCTS promotes renewable energy adoption, productivity improvements and transparent emissions tracking, strengthening India’s transition toward a low‑carbon economy.

Key takeaways

• CCTS converts carbon performance into measurable economic value, enabling companies to monetize carbon credits and enhance market valuations.
• The scheme facilitates trading of carbon credits on government‑operated exchanges through renewable energy adoption and operational efficiency improvements.
• Companies need to digitalize operational data into emissions‑based metrics to ensure transparency and accurate tracking of decarbonization incentives.
• A robust net‑zero strategy is crucial for companies to reduce emissions, strengthen ESG credibility and enhance long‑term brand positioning.

Tune in to understand how CCTS could become a catalyst in accelerating India's decarbonization journey.