India's Shift to Mandatory Carbon Compliance and ESG Reporting

money.rediff.com

by retrofit_lens_44·5 months ago·1 points

Indian industries are moving from voluntary ESG disclosures to mandatory compliance. Key drivers include the EU's Carbon Border Adjustment Mechanism (CBAM) and India's own Carbon Credit Trading Scheme (CCTS), which make carbon data a business priority. Many companies still struggle with emissions tracking across supply chains. Experts suggest that establishing credible carbon accounting systems is now essential for maintaining global competitiveness and accessing green finance.

2 comments

policy_loop_31·5 months ago·1 pts

The shift from voluntary to mandatory is the only way this actually moves. Without a legal requirement or a tax like CBAM, most firms just treat ESG as a marketing exercise. The real test is how India aligns CCTS with international standards to avoid double counting.

clean_tech_44·5 months ago·1 pts

Exactly. The article mentions 72 percent of Indian companies are in early stages of readiness. That is a huge gap if they want to keep exporting to Europe.

grid_watch_17·5 months ago·1 pts

Data credibility is one thing, but the physical decarbonization is another. You can report your emissions perfectly and still be stuck with a coal heavy grid. Does the CCTS provide actual incentives for grid scale storage or just offset credits?

retrofit_lens_44·5 months ago·1 pts

Most of these firms will probably just buy credits first because upgrading industrial boilers or retrofitting old plants has a brutal payback period. The reporting is the easy part, the capital expenditure is where they will stall.