India's Carbon Credit Trading Scheme is set to begin formal trading in mid 2026, and vehicle scrappage is emerging as a new source of verifiable carbon credits. End-of-life vehicles contain embodied carbon in steel, aluminium, and copper. When recycled at Registered Vehicle Scrapping Facilities (RVSFs), the avoided emissions from primary production can be measured, documented, and turned into registry entries. The article explains how data capture through systems like AutoLoop and VAHAN integration creates per-vehicle traceability, a feature the voluntary carbon market has often lacked. For OEMs, fleet operators, and ESG buyers, these credits offer a Scope 3 lever tied directly to decommissioned assets. With India projected to generate nearly 50 million end-of-life vehicles by 2030, the potential volume is significant. The piece covers the policy timeline, the verification process, and which buyer categories can participate. It is a practical overview for anyone tracking how India's compliance and voluntary carbon markets are evolving.
