Why Carbon Compliance Matters Now
The regulatory landscape has changed. Carbon compliance is no longer optional.
Four Pillars of Carbon Excellence
India CCTS
Carbon Credit Trading Scheme – Operated by Bureau of Energy Efficiency (BEE)
- Phase 1 (FY 2025-26): Large emitters >25,000 tonnes CO₂e
- Phase 2 (FY 2026-27): Medium emitters >10,000 tonnes CO₂e
- Phase 3 (FY 2027-28+): Smaller manufacturers >5,000 tonnes CO₂e
- Requirements: Annual GHG inventory, monthly reporting, third-party verification
- Penalties: 2x carbon credit price per tonne + environmental compensation
EU CSRD
Corporate Sustainability Reporting Directive -Affects Indian exporters
- Impact: If you supply to EU customers, YOUR emissions are THEIR Scope 3
- Required Data: Company carbon footprint (Scope 1+2+3)
- Product Level: Per unit/kg carbon footprint
- Reduction Plans: 3-5 year carbon reduction targets
- Verification: Third-party audit statement required
Two Major Regulations Affecting Your Business
Indian manufacturers face unprecedented compliance pressure from all sides. Here’s what’s at stake:
Export to Europe/US
Your customers are asking for carbon data NOW. EU CSRD requires full Scope 1+2+3 reporting from suppliers.
Large Emitters
Steel, cement, power, aluminum, pulp & paper with emissions >25,000 tonnes CO₂e annually. Mandatory now.
Medium Manufacturers
Chemicals, textiles, automotive, heavy manufacturing with >10,000 tonnes CO₂e. Compliance by FY 2026-27.
All Industrial Facilities
Most manufacturing facilities with >5,000 tonnes CO₂e will be covered. Expected FY 2027-28 onwards.
Consequences of Non-Compliance
Regulatory Penalties
Annual penalties for CCTS non-compliance. 2x carbon credit price per excess tonne + environmental compensation orders.
₹5L to ₹50K
Lost Contracts
Revenue at risk from EU export business. Customers replacing suppliers who can't provide carbon data.
10% to 30%
Missed Savings
Annual energy savings missed without monitoring. Compliance pays for itself through optimization.
₹15L to ₹40L
Competitive Disadvantage
Premium pricing early movers are commanding. Sustainability becoming key differentiator in RFPs.
2% to 5%
Beyond Regulation: Business Benefits
Financial Advantages
- Green loans at 0.5-1% lower interest rates
- Better credit terms with ESG ratings
- Investor confidence for listed companies
- Energy savings: ₹15-40L per year typical
Market Advantages
- Win new sustainability-focused customers
- Command 2-5% premium pricing
- Preferred supplier status with OEMs
- Future-proof against tightening regulations
Don't Wait Until It's Too Late
90-day implementation means you can be compliant by Q1 2026. But slots are limited.