India's Carbon Compliance Landscape

Understanding BRSR, CCTS, and India's path to net-zero by 2070

India's Climate Commitments

At the 2021 UN Climate Conference (COP26) in Glasgow, India announced ambitious targets:

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Net-Zero by 2070

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45% emission intensity reduction by 2030

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50% renewable power by 2030

These targets are being backed by two major frameworks governing corporate carbon in India: BRSR (reporting) and CCTS (trading).

India's Approach: Intensity vs Absolute

EU/USA: Absolute Cap

"You can emit maximum 1,000 tonnes CO₂ this year. Period."

Problem for India: Economic growth = more production = more emissions. Absolute caps limit growth.

India: Intensity Target ✓

"You can emit 0.65 tonnes CO₂ per tonne of cement produced."

Benefit: Companies can grow production, but must become more efficient.

This is the core of India's CCTS model — rewarding efficiency while allowing growth.

Two Parallel Systems

Aspect	BRSR (Reporting)	CCTS (Trading)
Who	Top 1,000 listed companies	490 energy-intensive companies (9 sectors)
What	Annual ESG disclosure	Meet emission targets or buy credits
Enforcer	SEBI	Bureau of Energy Efficiency (BEE)
Penalty	Regulatory action, investor scrutiny	2× market price of shortfall credits
Started	FY 2022–23	FY 2025–26 (trading: mid-2026)