The leading experts in carbon market explored how carbon markets can accelerate CBG adoption, create demand, and enable India’s transition toward a low-carbon economy in the panel discussion Establishment of Compliance-based Carbon Market Mechanism for the CBG Sector in India on the second day of India BioEnergy & Tech Expo 2025.

 Dr Pankaj Sharma, Additional Director, Petroleum Planning and Analysis Cell (PPAC), Ministry of Petroleum and Natural Gas highlighted the critical role of carbon credits, noting that with 50x more CBG plants needed, robust pipelines, tankers, and infrastructure are essential to scale production and displace fossil fuels.

 Saurabh Diddi, Director, Bureau of Energy Efficiency (BEE) explained the compliance mechanism, covering 13 sectors (8 already under carbon regulation). Discussed biomass utilization, CBG offset mechanisms, and opportunities in domestic & international carbon trade to create sustainable market demand

 Rajesh K Mediratta, Managing Director & CEO, Indian Gas Exchange (IGX) emphasised the need for a transparent trading platform for carbon credits and green gas certificates, enabling price discovery, liquidity, and participation from diverse market players to boost CBG adoption. He shared the experience of launching electricity and gas exchanges and the potential for a similar mechanism for CBG certificates.

 Mediratta highlighted the complexity of certifying green gas due to supply chain issues and flaring. “A platform for trading CBG certificates is proposed to address regional imbalances in production and obligation. Certificates offer flexibility in trading and provide price signals for green attributes. Similar mechanisms in Europe, like carbon credits and guarantee of origin, which run in parallel”, he said.

 Manoj Tandon, Senior Advisor, JMG Corporation Limited shared insights on industry readiness and compliance frameworks. He urged collaboration between policymakers, producers, and financiers to ensure scalability and smooth integration of CBG into India’s carbon market ecosystem. He also discussed challenges and future prospects for the carbon credit market in India.

 “Our company has registered 450 projects and holds approximately 100 million carbon credits.  There are issues with the credibility of sovereignty credits and international exchange registration has not been encouraging.  The 6.2 agreement with Japan is expected to open international trading opportunities.  The voluntary carbon market is currently depressed due to geopolitical conditions. The draft policy for the compliance market, covering 8 sectors, is under finalisation”, he said.

 Tandon anticipated that once regulatory frameworks are in place, projects will find trade and good value.

The panel agreed that a well-structured compliance-based carbon market will not only incentivise producers but also unlock investment, create revenue streams, and contribute to India’s Net-Zero goals.