Climate Advisory for Indian Corporates
India is the world’s 3rd largest GHG emitter, committed to net-zero by 2070, 45% emissions intensity reduction by 2030, and 500 GW non-fossil fuel capacity by 2030. The Carbon Credit Trading Scheme is live. EU CBAM is impacting exporters. Climate is now a board-level imperative for every Indian listed company.
India’s Climate Reality
India is simultaneously one of the world’s largest emitters and one of the most climate-vulnerable nations. With 1.4 billion people, a $3.5 trillion economy heavily dependent on monsoon patterns, and 7,500 km of coastline, climate change is not an abstract risk — it is an existential business challenge.
3.9B T
Annual CO2 emissions (2023), behind China and the USA. Per capita emissions still low (~2.9 tCO2/capita) but rising with industrialisation.
40%+
Share of coal in India’s primary energy mix. Energy transition is the largest decarbonisation challenge — and the largest opportunity.
676
Districts exposed to climate hazards. Heat stress, floods, cyclones, droughts, and water scarcity affect every sector of the Indian economy.
$15B+
Estimated annual climate-related losses in India. Agriculture, infrastructure, and real estate bear the largest physical risk burden.
India’s Climate Policy Framework
India’s climate regulatory landscape is evolving rapidly. Companies need to understand these frameworks to manage compliance risk and capture transition opportunities.
India’s NDC (Updated)
India’s updated Nationally Determined Contribution (August 2022) commits to: 45% reduction in emissions intensity of GDP by 2030 (from 2005 baseline), 50% cumulative electric power installed capacity from non-fossil fuel sources by 2030, and net-zero by 2070. These targets cascade into sectoral mandates affecting every listed company.
Carbon Credit Trading Scheme (CCTS)
India’s compliance carbon market notified under the Energy Conservation (Amendment) Act, 2022. Obligated entities in designated consumer sectors (steel, cement, aluminium, power, fertiliser, textiles, chemicals) will face emission reduction targets. MRV framework, carbon credit registry, and trading mechanisms are being operationalised.
NAPCC & 8 Missions
National Action Plan on Climate Change with 8 missions: National Solar Mission, Enhanced Energy Efficiency (PAT), Sustainable Habitat, Water, Sustaining the Himalayan Ecosystem, Green India, Sustainable Agriculture, and Strategic Knowledge for Climate Change. State Action Plans (SAPCCs) across all 28 states and 8 UTs.
PAT Scheme (BEE)
Perform, Achieve and Trade — BEE’s flagship energy efficiency scheme for designated consumers. Covers ~1,000 industrial units across 13 sectors. Energy savings certificates (ESCerts) tradeable on energy exchanges. Non-compliance penalties under the Energy Conservation Act.
Green Hydrogen Mission
≤19,744 crore National Green Hydrogen Mission targeting 5 MMT green hydrogen production capacity by 2030. Strategic focus areas: green steel, green ammonia, refining, fertiliser. PLI incentives for electrolyser manufacturing. Hydrogen purchase obligations for refineries and fertiliser plants.
RPO & REC Framework
Renewable Purchase Obligations for obligated entities (DISCOMs, open access consumers, captive users). RPO trajectory increasing to 43% by 2030 including hydropower purchase obligation (HPO). Renewable Energy Certificates (RECs) tradeable on power exchanges for compliance.
Climate Disclosure Under BRSR
BRSR Principle 6 (Environment) and BRSR Core both require climate-related disclosures. Here is what Indian listed companies must report.
BRSR Essential Indicators
- Total energy consumption and intensity (GJ/turnover)
- Scope 1 and Scope 2 GHG emissions (tCO2e)
- GHG intensity per rupee of turnover
- Share of renewable energy in total energy
- Water withdrawal by source and consumption
- Waste generation by category (hazardous/non-hazardous)
BRSR Leadership + BRSR Core
- Scope 3 GHG emissions (Leadership indicator)
- SBTi or equivalent targets (Leadership)
- Climate risk and opportunity assessment (Leadership)
- BRSR Core: Energy, GHG, water, waste KPIs (assurance required)
- Year-on-year trends with base year comparisons
- Value chain ESG data (forthcoming)
SEBI is studying ISSB (IFRS S2) adoption for India, which would add climate scenario analysis, transition plans, and physical risk disclosure requirements to the BRSR framework.
EU CBAM — Impact on Indian Exporters
The EU Carbon Border Adjustment Mechanism (CBAM) creates a carbon price on imports into the EU. Indian exporters in affected sectors face significant financial exposure.
Affected Indian Sectors
- Iron & Steel — India’s largest CBAM exposure (~$5B EU exports)
- Aluminium — High carbon intensity from coal-based smelting
- Cement & Clinker — Process emissions + energy emissions
- Fertilisers — Ammonia and urea production
- Hydrogen — Grey vs green hydrogen distinction
- Electricity — Indirect emissions in applicable sectors
CBAM Timeline
- Oct 2023 – Dec 2025: Transitional phase — quarterly reporting of embedded emissions, no financial obligation
- Jan 2026 onwards: Definitive phase — EU importers must purchase CBAM certificates based on embedded emissions
- 2026–2034: Free EU ETS allocation phase-out; CBAM financial impact increases annually
How RSustain Helps
CBAM advisory is delivered by RSustain UK as part of the RSustain Group. Services include embedded emissions calculation, CBAM reporting, decarbonisation roadmap to reduce CBAM exposure, and verification coordination.
RSustain UK CBAM Advisory ↗Climate Services from the RSustain Group
Carbon and climate consulting is delivered by specialised group entities. Contact us for India-specific enquiries and we will connect you with the right team.
Carbon Management & GHG Advisory
GHG inventory (Scope 1/2/3), emission factor selection, organisational boundaries, base year recalculation, carbon footprint reporting per ISO 14064 and GHG Protocol.
RSustain Carbon ↗Net-Zero Transition Planning
SBTi target setting, sector decarbonisation pathways, transition plan development, renewable energy procurement strategy, and technology assessment for Indian industries.
RSustain Carbon ↗Climate Risk & Scenario Analysis
Physical and transition risk assessment. Scenario analysis (1.5°C / 2°C / 3°C+ pathways). ISSB/IFRS S2 alignment. RBI climate stress testing for financial institutions.
RSustain Carbon ↗GHG Verification (ISO 14064)
Independent verification of GHG statements under ISO 14064-3 and ISAE 3410. GAB-accredited verification body. Limited and reasonable assurance levels.
RSustain Carbon ↗Carbon Credits & CCTS
India CCTS compliance credits, voluntary carbon market (Verra, Gold Standard), carbon credit quality assessment, Article 6 advisory, and offset portfolio strategy.
RSustain Carbon ↗EU CBAM Advisory
CBAM definitive phase compliance for Indian exporters. Embedded emissions calculation, CBAM certificates, quarterly reporting, and decarbonisation roadmap.
RSustain UK ↗Climate Platforms & Tools
Digital platforms and tools for climate risk assessment, GHG management, and climate-related reporting.
ResilientPulse
676-district climate resilience index for India. Physical climate risk mapping across heat stress, precipitation, floods, cyclones, drought, and air quality. Built on CHIRPS, NASA POWER, USGS, and GADM data.
Explore ResilientPulse ↗ScopeTracer
Map Scope 1, 2, and 3 GHG emissions across your value chain. India-specific emission factors. Essential for BRSR P6, BRSR Core, and CCTS readiness.
Launch tool →ClimateAdapt Planner
Physical climate risk assessment for Indian operations. Heat stress, flood risk, water scarcity, and cyclone exposure mapping using IPCC AR6 projections.
Launch tool →CBAM Compass
EU Carbon Border Adjustment readiness assessment for Indian exporters. Determine your CBAM exposure and compliance requirements.
Try free →CBAM Duty Calculator
Estimate EU carbon border duty liability for steel, aluminium, cement, and fertiliser exports. Embedded emissions analysis with EU ETS price scenarios.
Launch tool →Carbon Diagnostic
Quick screening tool to identify your major emission sources and generate a preliminary carbon profile. Starting point for companies beginning their GHG journey.
Try free →Complementary Services
BRSR Compliance
Climate data feeds directly into BRSR Principle 6 and BRSR Core environment attributes
Sustainability Strategy
Decarbonisation is typically the largest strategic theme in any sustainability roadmap
Environmental Impact Assessment
Climate risk and GHG assessment for EIA studies
ESG Data Assurance
Third-party assurance of GHG data under ISAE 3410
Climate Change FAQ for Indian Companies
What is India’s Carbon Credit Trading Scheme (CCTS)?
CCTS is India’s compliance carbon market, notified under the Energy Conservation (Amendment) Act, 2022. The Bureau of Energy Efficiency (BEE) administers the scheme. Obligated entities in designated consumer sectors (currently PAT-covered sectors: steel, cement, aluminium, power, fertiliser, textiles, chemicals, and others) will receive emission intensity reduction targets. Companies that exceed targets earn carbon credits; those that fall short must purchase credits or face penalties. The scheme includes a registry, trading platform, and MRV (Measurement, Reporting, Verification) framework.
Does BRSR require GHG emissions reporting?
Yes. BRSR Essential Indicators require Scope 1 and Scope 2 GHG emissions (in tCO2e) and intensity per rupee of turnover. Scope 3 is a Leadership Indicator (voluntary but expected for large companies). BRSR Core requires third-party assurance of GHG and energy data for top 1,000 companies (phased). SEBI is also studying ISSB (IFRS S2) adoption, which would add climate scenario analysis and transition planning requirements.
How does EU CBAM affect Indian companies?
CBAM requires EU importers to purchase carbon certificates based on the embedded emissions of imported goods. Indian exporters of iron & steel, aluminium, cement, fertilisers, and hydrogen are directly affected. From January 2026, EU importers must pay for CBAM certificates at the EU ETS carbon price (currently €60–80/tCO2). The financial impact for Indian steel exporters alone is estimated at $2–4 per tonne of steel in the near term, rising as free EU ETS allocations phase out by 2034. Companies can reduce exposure by decarbonising production and documenting verified emissions.
Should Indian companies set Science Based Targets (SBTi)?
SBTi targets are not mandatory in India but are increasingly expected by institutional investors, ESG rating agencies (CDP, MSCI), and global customers. Over 100 Indian companies have committed to or set SBTi targets. SBTi alignment strengthens BRSR Leadership disclosures, improves CDP scores, and demonstrates credible net-zero commitment. For companies not ready for SBTi, intensity-based emission reduction targets aligned with India’s NDC are a credible intermediate step.
Who provides climate advisory at RSustain?
Carbon management and climate advisory services are delivered by specialised RSustain Group entities: RSustain Carbon (rsustain.org) handles GHG inventories, net-zero planning, CCTS, carbon credits, and climate risk. RSustain UK (rsustain.co.uk) handles EU CBAM advisory. RSustain India provides India-specific tools (ScopeTracer, ClimateAdapt, CBAM calculators) and integrates climate data into BRSR reporting. Contact our India office and we will connect you with the right team.
Need Climate Advisory for Your Indian Operations?
Contact us and we will connect you with the right RSustain Group team for carbon management, net-zero planning, CCTS compliance, or CBAM advisory.