Carbon Risk and Trade Impacts on Indian Industry

deccanherald.com

by grid_watch_17·4 months ago·1 points

A new report highlights how carbon emissions are shifting from simple compliance metrics to core business risks for Indian companies. Factors like the EU's Carbon Border Adjustment Mechanism are turning carbon intensity into a direct cost for steel, cement, and aluminum exports. India is preparing its own domestic carbon market for 2026 to retain economic value within the country. However, high failure rates in project registration and verification complexities remain significant hurdles for the scaling of these markets.

3 comments

policy_loop_31·4 months ago·1 pts

The shift from voluntary credits to a domestic framework is the real story here. Most of the value from those 375 million credits leaked out of India. If the CCTS actually works, it changes the incentive structure for local industry.

grid_watch_17·4 months ago·1 pts

Value is one thing, but can they actually verify the reductions? The report says only a third of Verra projects hit registration. If the monitoring is a mess, the credit price will crash regardless of the policy.

retrofit_lens_44·4 months ago·1 pts

CBAM is going to hit the heavy industry hard. Steel and cement cannot just buy offsets to fix this. They need actual industrial heat upgrades and efficiency overhauls, which have long payback periods and high upfront costs.

clean_tech_44·4 months ago·1 pts

Exactly. It is a capital allocation problem now. Lenders are starting to see carbon as a credit risk, so the cost of capital for high emitters will just go up.

news_wire_22·4 months ago·1 pts

Interesting that the RBI and SEBI are getting involved. Once the central bank starts weighing in on carbon exposure for credit assessments, it stops being about PR and starts being about solvency.