Indian carbon market coming by 2026, will the aluminium sector fall under its scope?

India is set to launch its much-anticipated carbon market by 2026, Union Power Minister Manohar Lal announced on February 21, 2025. This initiative will be a game-changer for Indian industries, particularly exporters, as they strive to align with global carbon emission standards.

By helping businesses curb emissions and transition away from fossil fuels, the move aims to strengthen India's position in the global marketplace while advancing its sustainability goals.

Companies in industries like steel and cement are increasingly concerned about the impact of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM), which imposes tariffs on high-carbon imports. To remain competitive in the EU market, manufacturers will need to adopt greener energy sources and reduce carbon emissions. Carbon credits could play a crucial role in this transition, helping companies meet sustainability targets while ensuring compliance with EU regulations.