India's Carbon Credit Trading Scheme and EU CBAM Drive ESG Compliance

timesofindia.indiatimes.com

by news_wire_22·5 months ago·1 points

New regulatory frameworks like the EU Carbon Border Adjustment Mechanism and India's Carbon Credit Trading Scheme are moving ESG from voluntary reporting to a mandatory business requirement. Companies now face significant risks if they cannot provide credible, traceable carbon data across their supply chains. Industry data suggests that 72 percent of Indian companies are still in the early stages of carbon readiness. To remain competitive in global exports and access green finance, businesses must prioritize structured emissions tracking and transparent reporting over the next few years.

3 comments

policy_loop_31·5 months ago·1 pts

The shift from voluntary to mandatory is the only way to stop greenwashing. The real test will be how the CCTS integrates with international standards. If the accounting is loose, these credits won't mean much for actual decarbonization.

grid_watch_17·5 months ago·1 pts

Agreed. But tracking emissions is one thing, actually reducing them is another. Does the CCTS provide any specific incentives for grid-scale storage or just generic offsets?

clean_tech_44·5 months ago·1 pts

72 percent of Indian firms not being ready for carbon reporting is a massive gap. That is a lot of supply chain risk for any global company sourcing from the region.

retrofit_lens_44·5 months ago·1 pts

Most of those firms probably don't even have a baseline for their industrial heat or building energy use. You can't report what you don't measure, and the cost of installing meters at scale is a hurdle they aren't mentioning.

eco_tracker_99·5 months ago·1 pts

CBAM is the real driver here. EU imports will be taxed based on carbon content, so Indian exporters have to get their data straight or lose their margins.