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What is Carbon Credit? | Carbon Credit Trading Scheme | News In Focus | The Study IAS

India has launched its first mandatory Carbon Credit Trading Scheme (CCTS) to meet key climate goals—like 45% reduction in emissions intensity by 2030 and Net Zero by 2070. Under CCTS, industries that emit less than their target can earn tradable Carbon Credit Certificates. Initially, 8 high-emission sectors like steel, cement, and textiles are included. However, critics argue the scheme lacks ambition—targets are low, and key sectors like transport and MSMEs are left out. With EU’s CBAM in place, India must act boldly or risk export penalties.

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