India's Carbon Credit Ecosystem Projected to Reach USD 405 Billion
India's carbon credit market is set for substantial growth driven by new regulations and international demand. The market's value is projected to reach USD 405 billion by 2034.
India's carbon credit ecosystem is transitioning from voluntary, project-by-project trades to a regulated national system. IMARC Group reports the market was valued at USD 33.69 billion in 2025 and is forecast to reach USD 405.47 billion by 2034, expanding at a compound annual growth rate of 31.84% from 2026 to 2034.
The pivotal development is the Carbon Credit Trading Scheme (CCTS). As of fiscal year 2025–26, approximately 490 entities across seven energy-intensive sectors are subject to compliance obligations. Once Carbon Credit Certificates (CCCs) begin trading on power exchanges, the price heavy industry pays for a shortfall will start to establish a domestic benchmark.
Beyond compliance, global buyers are securing multi-year offtake agreements with Indian developers for carbon removal credits. This combination of compliance obligations and voluntary offtake will dictate the value and growth of India's carbon credit ecosystem through 2034.
The market has historically been led by voluntary credits, but the new regulatory framework is establishing the foundation for compliance trading. Corporate ESG disclosure mandates are increasing pressure on companies to measure emissions and procure offsets.