Carbon Markets Key to Climate Finance: WTC Mumbai’s Initiative to Support India’s Green Transition
With India racing toward its net-zero targets, a diverse group of stakeholders including industry experts, policymakers, scientists, scholars gathered at the World Trade Center Mumbai for a seminar on “Forests & Finance: Carbon Markets as Catalysts for Climate Investment.”
Jointly organized by MVIRDC WTC Mumbai and the All India Association of Industries (AIAI), the event brought together around 150 participants to explore the emerging potential of carbon markets and forest-based finance in accelerating India’s climate transition.
India is actively developing its carbon market through the Carbon Credit Trading Scheme (CCTS), aiming to reduce greenhouse gas emissions and incentivize sustainable practices. The CCTS, established by the Energy Conservation (Amendment) Act, 2022, introduces both compliance and voluntary mechanisms for carbon trading. The CCTS is designed to help India achieve its updated Nationally Determined Contribution (NDC) of reducing the emissions intensity of its GDP by 45% by 2030 (from 2005 levels) and reaching Net Zero by 2070.
The seminar was aptly timed, taking place just two days after the Union Minister’s announcement of India achieving 50% non-fossil fuel capacity in 2025. It is a significant milestone in the country’s clean energy transition, and a clear signal that nature-based solutions like forest conservation and carbon markets must now play a central role in achieving net-zero goals.
In his opening remarks, Dr. Vijay Kalantri, Chairman of MVIRDC WTC Mumbai and President of AIAI, welcomed speakers and participants, underlines the need for consistent climate policies and long-term vision. "India has an incredible natural capital in its forests. What we need is to align this with real financial value so both ecology and economy thrive together” he said. Further he emphasized that carbon credits are a crucial tool in this, as they represent a tangible reduction in emissions, making climate action a tradable asset that incentivizes vital investments in our green future.+
Ms. Priya Pansare, Director, Trade & Investment Promotion, WTC Mumbai welcomed all dignitaries and set the tone for the seminar by highlighting the urgent need to integrate forests into India’s climate finance strategy.
India’s Forest Potential Meets Market Opportunity
India’s forest cover spans nearly 81 million hectares- around 24.6% of its land and acts as a massive carbon sink. However, speakers agreed that this potential is still largely untapped in the financial system.
Experts pointed to new initiatives such as the Carbon Credit Trading Scheme (CCTS) and the Green Credit Programme (GCP), which are laying the groundwork for a national carbon market. So far, over 360 million carbon credits have been issued in India. But challenges persist particularly around unclear carbon ownership, delays in regulatory rollouts, and lack of community recognition under the Indian Forest Act.
Speakers noted that small businesses and startups are well-positioned to play a key role especially in areas like monitoring, reporting, and verification (MRV), agro forestry, and state-level models such as the one in Uttar Pradesh. Still, panelists emphasized that these efforts will only scale if they overcome hurdles like financing, verification bottlenecks, and ensuring meaningful community involvement.
Highlights from Key Speakers:
Mr. Arvind Kumar Jha, former PCCF of Maharashtra, warned of severe consequences of climate inaction from disrupted monsoons to food insecurity and urged stronger implementation of carbon trading systems.
Dr. Rohini Chaturvedi, strategic advisor on forest governance, raised concerns about the under-financing of forest ecosystems and stressed the importance of ecological and social integrity in carbon markets, including upholding the Forest Rights Act.
Mr. Swapan Mehra, CEO of IORA Ecological Solutions, called forests “GDP contributors,” pointing to their impact on clean air, water, and climate regulation. He urged more blended finance solutions and larger-scale restoration investments.
Ms. Ashwini Hingne of WRI India spoke about how carbon markets can create new revenue opportunities for MSMEs if structured to ensure additional, measurable, and permanent emissions reduction. She also discussed about robust domestic carbon markets can help industries adapt while staying globally competitive.
Dr. Pradeep Reddy Punnam of IIT Bombay explained the science and economics behind nature-based carbon dioxide removal (CDR) solutions like biochar, agroforestry, and enhanced rock weathering, calling them viable and cost-effective alternatives to expensive tech-based CCUS methods.
Experts at the seminar called for the urgent need to financially unlock India's vast forest potential to meet net-zero targets. Speakers emphasized that stronger implementation of carbon trading systems and innovative financing are crucial to scale nature-based solutions. They also noted the potential for MSMEs in carbon markets and the importance of ecological and social integrity in these systems. Finally, experts called for greater coordination and education to accelerate climate investments through carbon markets.
Way Forward
The seminar closed with clear takeaways:
· Build stronger coordination between state and national agencies on carbon programs.
· Educate MSMEs and investors about nature-based solutions.
· Scale up projects from 50 to 5,000 hectares to attract institutional finance.
· Improve data systems and simplify community engagement processes.
As India accelerates toward its 2070 net-zero goal, the role of forests and carbon markets will only grow more central. Events like this are vital in turning climate potential into climate action.
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