An Analytical Study of the Carbon Credit Market in India Market Size, Key Players, Regulatory Framework and Trading Mechanisms

Abstract This paper presents a critical analytical discussion of the carbon credit market in India with focus on market dimensions, key market participants, regulatory contingencies and trading mechanisms. Based on secondary sources, such as government documents, regulatory acts and industry reports and academic literature between 2015 and 2025, the investigation measures the market growth, stakeholder demographics and examines compliance and trading infrastructure. The results show that the market, already huge with an estimated USD 4 billion in 2023, has a booming market with compliance and voluntary segments driving the liquidity and involvement. The major supervisory roles are held by regulatory bodies like the Ministry of Power, the Bureau of Energy Efficiency, and the Central Electricity Regulatory Commission, which collaborate with the developers of the project, financial institutions and the verification agencies. The institutional framework of legislation, the Energy Conservation (Amendment) Act, 2022 and the Carbon Credit Trading Scheme, 2023, ensures that the process is transparent and credible by using digital innovations in measurements, reporting and verification (MRV). Growth opportunities are strong in energy, agriculture, forestry and waste management sectors whereas challenges such as regulatory uncertainties and lack of infrastructures should be fixed on a short-term basis. The overseas comparison of the carbon trading market highlights the best practice, which can be used to make the Indian market effective. The researchers draw the conclusion that continuous policy improvement, technological growth and involving stakeholders are essential conditions of turning India into a country of fulfilling its climate commitments and achieving the conditions of sustainable economic development.