L&S Attorneys · Est. 1985
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Practice · Carbon Markets

India's new market-based environmental instruments.

India's Carbon Credit Trading Scheme has operationalised the Indian Carbon Market and will accelerate international partnerships through Article 6 transfers under the UNFCCC Paris regime.

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Overview

A specialist carbon markets practice.

We guide clients through the entire lifecycle of both compliance and voluntary carbon markets, helping you transform environmental liabilities into strategic assets. Our firm provides deep legal and strategic counsel on navigating complex market architectures, including compliance market, offset programs, and the rapidly evolving Voluntary Carbon Market (VCM). We advise on carbon strategy, risk management, and the technical legal aspects of project validation and verification. We enable entities to manage compliance obligations under international regimes by delivering the precise contractual frameworks and strategic insights required to optimize the carbon portfolio.

As India establishes its own domestic carbon ecosystem, we provide specialized counsel on navigating the evolving rules of the Carbon Credit Trading Scheme (CCTS). We act as a critical interface between our clients and key regulatory bodies like the Bureau of Energy Efficiency (BEE) and the Central Electricity Regulatory Commission (CERC). From structuring localized trading strategies under the CCTS to executing international cross-border offset transactions, we ensure that operations remain legally compliant, robust, and aligned with the latest regulatory mandates.

We provide comprehensive legal and regulatory counsel to Indian project developers and international investors navigating the evolving Article 6 framework. Our team helps domestic clients structure carbon projects to meet the stringent criteria for Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 and the centralized Article 6.4 mechanism. We serve as a trusted bridge to India's dynamic carbon market for international carbon credit buyers.

Cross-border carbon flows are shaped by Article 6 of the Paris Agreement, with UNFCCC guidance governing corresponding adjustments and credit transfers, and by the European Union's Carbon Border Adjustment Mechanism under the EU climate-action framework. Independent monitors - the Climate Change Performance Index, Carbon Brief and Climate Policy Initiative India - track how these instruments perform in practice.

We act for obligated entities, project developers, traders, corporate buyers of voluntary credits and investors in carbon project portfolios, across registration, methodology selection, offtake, transfer restrictions and dispute resolution.

India's market architecture

Two market segments.

Compliance market
Compliance market

Statutory market for obligated entities under the Carbon Credit Trading Scheme, administered by BEE under the Ministry of Power.

  • · Obligated entities
  • · Registry & trading rules
  • · Accredited verifiers
Offset market
Offset market

Voluntary offset projects and credits, including the MoEFCC Green Credit Programme and Article 6 transfers under the Paris regime.

  • · Project registration
  • · Methodology & verification
  • · Tradeable offset credits
Services

Services we provide.

  • Carbon market life-cycle advisory
  • Strategies to operate in the carbon market optimally
  • Drafting and reviewing complex transaction documentation
  • Advising on baseline methodologies
  • Representing clients in regulatory proceedings
  • Drafting and negotiating Mitigation Outcome Purchase Agreements (MOPAs)
  • Legal due diligence on cross-border carbon credit transactions under UN rules and India's domestic export policies
Capabilities

What we do.

  • CCTS obligation analysis and compliance roadmap
  • Green Credit Programme registration and project structuring
  • Voluntary carbon credit offtake and ERPAs
  • Article 6 (Paris Agreement) cross-border credit transactions
  • Methodology selection and validation/verification coordination
  • Corresponding adjustment and export restriction advisory
  • Carbon project finance and portfolio investments
  • Carbon market disputes and enforcement
Pillar · carbon markets

Insights in this pillar

Article

What is the buzz about the Carbon Credit Trading Scheme in India?

India's national carbon market has been operationalised under the Carbon Credit Trading Scheme (CCTS). The article walks through why CCTS matters on the global stage, how it aligns with CBAM, how the pricing mechanism works, why credibility and quality of credits are decisive, and what it means for hard-to-abate sectors and supply-chain resilience.

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