Leveraging Carbon Markets for Cost-Efficient Emissions Reductions in India

This report outlines the potential for a national carbon market in India to reduce industrial emissions costs and support low-carbon transformation. It emphasizes that while such a market can unlock financing for small enterprises and streamline existing mechanisms, success requires careful design to avoid carbon leakage and inefficiency, supported by stakeholder capacity building and industry engagement.

• India is in the process of developing a national carbon market intended to lower greenhouse gas emissions and facilitate a cost-efficient, low-carbon transition for industry. Such a market could provide financing and technology transfer for micro, small, and medium enterprises.
• A properly designed carbon market can lower emissions reduction costs for industry and improve administration and compliance by potentially integrating existing market-based mechanisms into one single framework, thereby increasing emissions coverage.
• The implementation of a carbon market is complex and carries risks; poor design may result in carbon leakage, loss of competitiveness, inefficiency, inequity, and lack of compliance. Success depends on tailored capacity for stakeholders, the use of pilots and simulations, industry engagement, and complementary policies to mitigate distributional and competitiveness impacts.

APA

World Resources Institute (n.d.). Leveraging Carbon Markets for Cost-Efficient Emissions Reductions in India. https://www.wri.org/research/carbon-markets-cost-efficient-emissions-reductions-india

Chicago

World Resources Institute. Leveraging Carbon Markets for Cost-Efficient Emissions Reductions in India. n.d. https://www.wri.org/research/carbon-markets-cost-efficient-emissions-reductions-india.

Wikipedia

{{cite report |author=World Resources Institute |title=Leveraging Carbon Markets for Cost-Efficient Emissions Reductions in India |url=https://www.wri.org/research/carbon-markets-cost-efficient-emissions-reductions-india |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendleveraging, author = {{World Resources Institute}}, title = {{Leveraging Carbon Markets for Cost-Efficient Emissions Reductions in India}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/carbon-markets-cost-efficient-emissions-reductions-india}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }