Prakriti 2026: India Launches Carbon Market Portal & Announces Trading to Begin in 4 Months

India made a landmark move in its climate action journey on 21 March 2026, when Union Power Minister Manohar Lal Khattar inaugurated the 2nd International Conference on Carbon Markets — Prakriti 2026 — and simultaneously launched the official Indian Carbon Market (ICM) Portal at the Bharat Electricity Summit 2026 in New Delhi. The event, organised by the Bureau of Energy Efficiency (BEE) under the Ministries of Power and Environment, Forest and Climate Change, brought together policymakers, industry leaders, and global experts to chart the future of carbon trading in India.

The Big Announcement: Trading to Begin in 4 Months

The most significant announcement at Prakriti 2026 came from Union Power Minister Manohar Lal Khattar, who declared that formal carbon credit trading in India will commence within the next four months — placing the launch around July–August 2026. Speaking at the conference, the minister stated: "We have made a framework and after four months, I can say that formally, carbon trading will start."

He also emphasised that all stakeholders must register under the Carbon Credit Trading Scheme (CCTS) before being eligible to trade Carbon Credit Certificates (CCCs). The minister urged businesses to view carbon markets not merely as a compliance requirement but as a strategic opportunity for innovation, investment, and sustainable growth.

The Indian Carbon Market Portal: India Goes Digital

One of the centrepiece announcements of Prakriti 2026 was the official launch of the Indian Carbon Market Portal (indiancarbonmarket.gov.in). This centralised digital platform will serve as the backbone of the entire CCTS ecosystem, handling registration, monitoring, reporting, and verification (MRV) of carbon emissions across all participating industries.

The portal currently tracks nearly 490 obligated entities across seven energy-intensive sectors, alongside 40+ registered entities already submitting projects in biogas, hydrogen, and forestry. It integrates digital MRV technologies to ensure credibility and transparency in emissions accounting, a critical requirement for India's growing carbon market credibility both domestically and internationally.

CERC Regulations 2026: Trading Gets Its Legal Backbone

A crucial enabling step came before Prakriti 2026. On 27 February 2026, the Central Electricity Regulatory Commission (CERC) notified the CERC (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026. These regulations provide the operational architecture for carbon credit trading in India, specifying that Carbon Credit Certificates (CCCs) shall be traded exclusively through power exchanges registered with the Commission.

Key provisions of the CERC Regulations 2026 include:

• Trading through registered Power Exchanges only

• Price collar mechanisms to prevent extreme market volatility

• Separate trading of compliance CCCs and voluntary offset credits

• Transparent registry and market oversight by CERC

• Clear rules for market participation, price discovery, and regulatory oversight

What is the Carbon Credit Trading Scheme (CCTS)?

The Carbon Credit Trading Scheme, notified in June 2023 under the Energy Conservation (Amendment) Act, 2022, forms the legal foundation of India's carbon market. It operates under two distinct components:

1. Compliance Market: Covers nearly 490 large industrial units across 7 energy-intensive sectors (including aluminium, cement, chlor-alkali, fertiliser, iron & steel, pulp & paper, and textiles). These entities are assigned Greenhouse Gas Emission Intensity (GEI) targets by the Bureau of Energy Efficiency. Entities that outperform their targets earn Carbon Credit Certificates, while those falling short must purchase CCCs from the market.

March 31, 2026: End of the first CCTS compliance cycle (FY26 targets)

April - July 2026: Verification period for GEI targets across 490 entities

July - September 2026: Assessment and Credit Issuance phase

October 2026: First batch of Carbon Credit Certificates (CCCs) to be issued

November 2026 - January 2027: First formal trading window for CCCs on power exchanges

2. Voluntary Offset Market: Open to all entities including MSMEs and farmers. Projects in renewable energy, biogas, green hydrogen, afforestation, and waste management can register and earn tradable carbon credits. Currently, over 40 entities have already registered projects under nine notified methodologies.

The Road Ahead: Key Milestones in 2026

With trading set to begin within four months of March 2026, here is a summary of the key milestones ahead:

India, CBAM, and the Global Carbon Market Connection

The timing of India's carbon market launch is no coincidence. The European Union's Carbon Border Adjustment Mechanism (CBAM) has been fully operational since 2026, imposing carbon-related levies on imports from high-emission sectors like steel, cement, aluminium, fertilisers, and electricity.

For Indian exporters in these sectors, the absence of a domestic carbon price would mean paying CBAM charges to the EU. However, with India's own carbon market now operational, Indian companies that demonstrate verified emission reductions can potentially claim CBAM credits, making the domestic ICM a direct financial advantage in global trade.

The portal also aligns India with Article 6 of the Paris Agreement, which enables countries to trade carbon credits internationally. This positions India as a potential hub for high-integrity carbon credits in global markets.

Conclusion: A New Era for India's Green Economy

Prakriti 2026 and the launch of the Indian Carbon Market Portal mark a turning point in India's climate journey. With the regulatory framework in place via CERC Regulations 2026, 490 obligated entities under GEI targets, 40+ voluntary project registrants, and formal trading expected by July 2026, India's carbon market is no longer a future aspiration — it is an imminent reality.

For businesses, investors, and sustainability professionals, the message is clear: the window to position yourself in India's carbon market is now. Whether you are in heavy industry looking to meet compliance targets, a renewable energy developer generating voluntary credits, or an MSME exploring green opportunities, the Indian Carbon Market offers a structured, transparent, and growing ecosystem to participate in India's net-zero journey.

Stay tuned to IndianCarbonMarket.com for the latest updates, regulatory developments, and guidance on how to register, trade, and maximise your participation in India's carbon economy.