(MENAFN- Live Mint) NEW DELHI: In a significant step in India's climate action journey, the Centre plans to launch the Indian Carbon Market (ICM) portal by January next year, according to two officials aware of the development.

The centralized digital platform will serve as the backbone of the country's emerging carbon credit trading system-facilitating the creation, registration, and issuance of carbon credits to help industries offset emissions by investing in cleaner technologies or purchasing credits from others.

The move comes at a time when carbon prices have surged globally. The global carbon credit market was valued between $531.2 billion and $656.8 billion in 2024, according to different analyst estimates, with variations due to differing reporting methods and inclusion criteria. By launching the Indian Carbon Market, New Delhi aims to position itself as a key player in the fast-growing global ecosystem for carbon finance and emissions trading.

While a separate platform will handle trading, the ICM portal will manage the full lifecycle of carbon projects-from proposal submission to registration, validation, verification, issuance, and renewal. It will cater to both compliance and voluntary carbon credit mechanisms, one of the officials said.

The Bureau of Energy Efficiency (BEE) has been tasked with developing the ICM portal, a critical step toward operationalizing India's carbon market and advancing its climate goals.

“The proposed digital ecosystem will consist of two key components: the ICM Portal and the ICM Registry. Together, these platforms aim to streamline and strengthen the operations of the Indian Carbon Market by ensuring transparency, traceability, and efficiency in carbon credit transactions,” the other official said.

The ICM Portal will act as the central interface for market participants and regulators, supporting both the compliance and offset mechanisms under the ICM framework. Its core functions will include project proposal submission, registration and approval, validation and verification, issuance of carbon credits, and credit period renewals.

The ICM Registry-an integrated but distinct component-will maintain records of issued credits, track transactions, and provide a transparent view of credit ownership throughout their lifecycle.

Compulsory trading of carbon credits is expected to begin by September next year, while voluntary trading is slated to start by March 2026, the second official said.

Queries sent to the ministries of power and environment, forest and climate change, as well as to the Bureau of Energy Efficiency, remained unanswered till press time.

“The setting up the Indian Carbon Market Portal is a significant step. This will ensure our commitment towards Paris Agreement and also would ensure that we are reducing our emission in our backyard and further demonstrating that we are taking measures to reduce our emission,” said Amit Anand, CEO, Carbon Check (India) Pvt. Ltd, a globally accredited organization that provides validation and verification services for greenhouse gas projects under various programmes.

Path to net zero

India's carbon market is expected to play a crucial role in achieving its existing climate action plans, called Nationally Determined Contributions, or NDCs, under the Paris Agreement. By building a robust, scalable, and digitally enabled system, the government aims to support both domestic and international participants in reducing emissions efficiently.

The portal will also integrate Article 6 modules of the Paris Agreement, which establish frameworks for international cooperation on climate targets. These include market-based mechanisms under Articles 6.2 and 6.4, and non-market approaches under Article 6.8, allowing countries to exchange emission reductions, mobilize funding for developing nations, and enhance global climate ambition. The Article 6 integration is expected to be operational by January 2026.

The development is significant as India's NDCs commit to reducing the emission intensity of its GDP by 45% from 2005 levels by 2030, achieving 50% of cumulative electric power capacity from non-fossil fuel sources by 2030, and reaching net-zero carbon emissions by 2070.

On 5 March, Union environment minister Bhupender Yadav said India had already achieved a 36% reduction in emission intensity between 2005 and 2020-well on track toward its 2030 target. He also cited the Union Budget 2025's emphasis on energy security, clean energy expansion, and domestic green manufacturing.

The Energy Conservation (Amendment) Act, 2022 paved the way for the creation of a carbon market in India, followed by the government's notification of the Carbon Credit Trading Scheme in 2023 for the compliance market.

On 7 October, the BEE said it had received applications from agencies seeking accreditation as carbon verification bodies-KBS Certification Services Ltd and Design2Occupancy Services LLP-and invited public comments on them by 23 October 2025.

Meanwhile, the Indian Energy Exchange has set up a wholly owned subsidiary, International Carbon Exchange Pvt. Ltd, to explore opportunities in the voluntary carbon market. Similarly, Power Exchange of India Ltd also plans to launch a carbon trading platform.

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