India is at a critical juncture in its climate policy journey, with ambitious goals to reduce the emissions intensity of its GDP by 45% below 2005 levels by 2030 and reach net-zero emissions by 2070.

As part of this push, India is developing a national compliance-based carbon market under the Energy Conservation (Amendment) Act 2022. This Carbon Credit and Trading Scheme (CCTS), notified by the Ministry of Power in June 2023, lays the foundation for a market-driven emissions reduction framework. However, its long-term success will likely depend on ensuring market credibility, transparency in processes, institutional capacity, integration with global frameworks, and managing socio-economic impacts.

In this context, Prayas (Energy Group) and Sustainable Futures Collaborative (SFC) convened a closed-door roundtable under the Chatham House rules on March 20, 2025 in New Delhi, which brought together participants from across policy think tanks, regulatory consultancies, industry, industry associations, and civil society organisations. It served as a platform to exchange diverse perspectives on the institutional, regulatory, and market-related elements of the CCTS. This brief reflects the key insights that emerged from the discussion, highlighting seven broad yet interlinked issues central to the design and operationalisation of the CCTS.