Under the leadership of Prime Minister Narendra Modi, India is reaffirming its global commitment to sustainable innovation and climate action. As the country advances toward its net zero 2070 target, low-carbon technologies are emerging as critical enablers. By addressing legacy challenges, driving innovation, and scaling homegrown solutions—especially in unexplored reserves and clean energy sectors—India is not only reducing its carbon footprint but also unlocking new economic value aligned with its climate goals.

Under the leadership of Prime Minister Narendra Modi, India is reaffirming its global commitment to sustainable innovation and climate action. As the country advances toward its net zero 2070 target, low-carbon technologies are emerging as critical enablers. By addressing legacy challenges, driving innovation, and scaling homegrown solutions—especially in unexplored reserves and clean energy sectors—India is not only reducing its carbon footprint but also unlocking new economic value aligned with its climate goals.

As the world prepares for COP30 in Belém, Brazil, in 2025, the urgency of climate action has never been greater. The IPCC's Sixth Assessment Synthesis Report (2023) confirmed what climate scientists have long warned - global warming is accelerating, and the world must act swiftly and cohesively to stay within the 1.5°C threshold. Against this backdrop, COP30 represents not only a critical inflection point for global negotiations but also a pivotal opportunity for India to fast-track its climate ambition through robust carbon markets and the adoption of cutting-edge technologies such as digitally verified carbon offsets. This World Environment Day, as we reflect on environmental stewardship, it is essential to examine how India can shape and benefit from these evolving global mechanisms.

India has historically walked a tightrope between development imperatives and environmental responsibility. However, the past few years have seen a definitive shift. India remains one of the few major economies whose emissions trajectory is broadly aligned with its fair share under the Paris Agreement, despite its lower historical emissions and ongoing development needs. According to Climate Action Tracker (2024), India's climate policies are more ambitious relative to its capabilities than many high-income nations, and its renewable energy targets are among the most aggressive globally. India's target of achieving net-zero emissions by 2070, supported by intermediary milestones such as 500 GW renewable energy capacity by 2030, reflects both ambition and pragmatism.

One of the most significant instruments in this strategy is the development of a national carbon market. In July 2023, India formally launched the Carbon Credit Trading Scheme (CCTS), governed by the Bureau of Energy Efficiency and the Central Electricity Regulatory Commission. This compliance carbon market builds upon the successes of the Perform, Achieve and Trade (PAT) scheme, but unlike PAT, the CCTS opens the door for trading emission reduction certificates beyond the power and industrial sectors.

The policy framework under the Energy Conservation (Amendment) Act, 2022, integrates voluntary and compliance markets under a unified structure. Experts estimate that India's carbon market could unlock a $200 billion opportunity by 2030, combining domestic growth with environmental integrity. Sectors like steel, cement, transport, and even agriculture are expected to come under its ambit, allowing Indian industries to earn credits by exceeding efficiency norms and trade them within a national or international carbon market.

While carbon pricing is still nascent in India, the International Carbon Action Partnership (ICAP) has acknowledged the country's proactive steps as exemplary among developing nations. This approach, experts argue, not only supports emissions reduction but offers Indian companies a competitive edge in a carbon-constrained global economy, particularly once the EU's Carbon Border Adjustment Mechanism (CBAM) fully comes into force by 2026.

The credibility of carbon markets hinges not merely on the volume of credits traded, but on their integrity, traceability, and impact. Traditional Monitoring, Reporting and Verification (MRV) mechanisms are often paper-heavy, delayed, and susceptible to manipulation. In this context, Digitally Verified Carbon Offsets (DVCOs) are emerging as a transformative solution.

DVCOs use blockchain, satellite imagery, remote sensing, and machine learning to validate emissions reductions in real time. This dramatically reduces verification costs and enhances transparency, making it easier for buyers to trust the offsets they purchase. The World Bank and other organizations highlight that digital MRV systems can significantly streamline the measurement, reporting, and verification processes, leading to increased efficiency and reduced transaction costs. For instance, the World Bank notes that digital technologies can help reduce the cost and time to emission reduction credit issuance, enabling more efficient verification and the move toward real-time generation of carbon credits.

India is already demonstrating leadership in this domain. In January 2025, Google announced a landmark partnership with Indian start-up Varaha, which uses mobile-enabled MRV tools and remote sensing to convert agricultural waste into biochar - a stable form of carbon that also improves soil fertility. This project is anticipated to sequester up to 10,000 tonnes of CO₂ equivalent by 2030 while supporting thousands of smallholder farmers.

This model exemplifies the co-benefits of digitally verified offsets: environmental impact, economic upliftment, and technological empowerment. Such solutions are scalable across sectors - be it afforestation, renewable energy, or waste management, and can serve as India's flagship offerings in global voluntary carbon markets.

Platforms such as Earthlink by Earthood are, therefore, pioneering efforts being made in India to enable real-time and digital certification of emission reductions, ensuring that Indian offsets meet the high-integrity standards required under Article 6 of the Paris Agreement. Earthood's innovative approaches provide the capability to leapfrog legacy verification bottlenecks.

The climate agenda at COP30 will largely hinge on the operationalisation of Article 6 of the Paris Agreement, particularly Article 6.2 and 6.4, which govern the framework for international carbon trading and the Sustainable Development Mechanism respectively. At COP29 in Dubai, countries achieved consensus on establishing a registry and tracking system for international carbon transactions, thus setting the stage for concrete market activities under Article 6 by the time COP30 convenes in Brazil.

India, as a major emitter and a developing economy, is expected to play a pivotal role in shaping these dialogues. Aligning India's domestic carbon market with Article 6 mechanisms could unlock access to global finance, particularly through Internationally Transferred Mitigation Outcomes (ITMOs). These allow countries or companies to buy high-quality credits from India to offset their own emissions, thereby channeling funding into Indian climate projects, especially those involving rural communities, biodiversity preservation, or green infrastructure.

Moreover, India's presidency of the G20 in 2023 and continued participation in coalitions such as the International Solar Alliance and the Leadership Group for Industry Transition (LeadIT) underscore its diplomatic clout in climate matters.

India must also seize the opportunity to press for climate finance reform at COP30. While developed nations agreed to mobilise $100 billion annually by 2020, a promise largely unmet - projections suggest that developing countries will need at least $1.3 trillion annually by 2035 to meet their climate goals. India can lead the call for improved financial flows, concessional loans, and blended finance instruments, ensuring that carbon markets do not replicate historic inequities.

As the world commemorates World Environment Day and looks towards COP30, India finds itself uniquely poised at the confluence of ambition, capability and necessity. By strengthening its domestic carbon market, adopting digitally verified offsets, and aligning with Article 6's international architecture, India can create a climate strategy that is both equitable and effective.

The journey from intention to impact must be paved with transparency, innovation, and collaboration. Digitally verified carbon markets offer precisely this promise--of making emissions reductions verifiable, financeable and scalable. For India, they offer not only a pathway to meet its net-zero commitment, but also a chance to become a global provider of credible, high-integrity climate solutions.

In the decade that defines the future of the planet, India must not just participate - it must lead!

This article is authored by Tuhin A. Sinha, national spokesperson, BJP and Kaviraj Singh, executive director and CEO, Earthood.

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Source: HindustanTimes
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