A carbon credit represents one tonne of carbon dioxide (or the same warming effect from another greenhouse gas) that was either kept out of the air or taken out of it. A company that buys and retires a credit can count that tonne towards its climate goals. Credits are only trustworthy when an independent auditor has checked the project and a registry tracks each credit, so it cannot be sold twice.
India launched its own carbon market in 2023. Factories now have emission targets, and new projects can earn credits. But very few people know how any of it works. These guides are free. Use them, share them, and ask us if something is unclear.
Some credits come from avoiding emissions, for example a solar plant replacing coal power. Others come from removing carbon dioxide that is already in the air and storing it, for example in biochar or through rock weathering. Most of the world’s climate targets will need both, but removals are scarcer and buyers increasingly pay more for them.
The Carbon Credit Trading Scheme, 2023 has two parts. In the compliance part, plants in sectors such as steel, cement and aluminium get targets for emissions per tonne of product. Plants that beat their target earn carbon credit certificates; plants that miss it must buy them. In the offset part, projects outside those sectors can earn certificates for approved activities. The Bureau of Energy Efficiency runs the scheme, Grid Controller of India keeps the registry, and certificates are traded on power exchanges under rules set by the Central Electricity Regulatory Commission.
When rain falls, it picks up carbon dioxide and becomes slightly acidic. When this water meets rocks rich in calcium or magnesium, the carbon is turned into bicarbonate, which is carried to the sea and stored for thousands of years. Crushing suitable rock or industrial slag and spreading it on farmland speeds up this natural process. On acidic soils it also raises pH, much like lime.
Biochar is made by heating crop waste, wood or other biomass with very little oxygen. Instead of burning away or rotting, much of the carbon is locked into a stable, charcoal-like material that can last for centuries in soil. Used on farms, it can also help soils hold water and nutrients.
Before credits are issued, a project must follow a published method from a standard such as Puro.earth or Isometric. An independent auditor checks the design, the measurements and the evidence. Emissions from running the project are subtracted, along with any carbon that might not stay stored. Only what is left becomes credits.
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