India: India’s carbon credit trading scheme will become stricter by the 2027 financial year, increasing compliance costs for cement companies, according to an ICRA ESG analysis.
The report looked at 14 companies, including 10 cement producers, and found that the 2026 financial year will be a ‘transition period’, with companies able to meet targets by reducing emission intensity by around 1.5%. Failure to reduce emissions may force companies to buy carbon credits. By 2027, the report said that around 30% of cement companies could face deficits, even under favourable conditions, with financial impacts reaching up to US$74.3m and carbon costs reducing profits by up to 19%. Companies will need to reduce emission intensity by around 0.7% in 2026 and 2.7% in 2027 compared to 2024 levels.
