India expands carbon market through trading schemes and vehicle recycling

India is developing a regulated framework for carbon credits through its Carbon Credit Trading Scheme (CCTS). This system aims to transform pollution reduction into a financial asset, allowing companies that exceed emission reduction targets to earn credits that can be acquired by those unable to meet their obligations.

In a related development for the circular economy, Meta Materials Circular Markets (MMCM) has introduced a methodology approved under the Cercarbono certification programme to generate carbon credits from the recycling of end-of-life vehicles (ELVs). This methodology quantifies greenhouse gas emission reductions achieved by recovering materials like metals and plastics, reducing the need for virgin material production.

NITI Aayog reports that India's volume of end-of-life vehicles is expected to grow from approximately 10 million in 2020 to nearly 50 million by 2030, highlighting the growing need for sustainable management and resource recovery systems.