Carbon Risk Becomes Key Variable for Indian Businesses
POWER & RENEWABLE ENERGY

Carbon Risk Becomes Key Variable for Indian Businesses

"Carbon is increasingly shaping business decisions in India, moving beyond compliance to influence costs, profitability, and credit risk, according to a Rubix Data Sciences and Breathe ESG report. With over 375 million voluntary carbon credits issued globally from Indian projects, the domestic Carbon Credit Trading Scheme (CCTS) seeks to retain economic and environmental value within India.

The report highlights bottlenecks in project execution, noting only one-third of over 1,100 Verra-certified projects reach registration, impacting monetisation and investor confidence. Rising global climate regulations, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), are turning carbon into a direct export cost for sectors including steel, aluminium, cement, and fertilisers.

Mohan Ramaswamy, Co-founder & CEO, Rubix Data Sciences, said: “A large part of carbon risk will not sit within a company’s own operations, but within its supply chain. Businesses viewing carbon only from a compliance lens may discover exposure comes indirectly through suppliers, financing, and export dependencies.”

The report also warns lenders, insurers, and rating agencies to integrate carbon exposure into credit assessments, while Scope 3 emissions make supplier-level transparency critical for procurement and trade finance. India’s carbon transition is now an economic and financial shift, influencing competitiveness, financing, and enterprise value across sectors, with carbon increasingly tied to supplier evaluation and long-term commercial viability."

Carbon is increasingly shaping business decisions in India, moving beyond compliance to influence costs, profitability, and credit risk, according to a Rubix Data Sciences and Breathe ESG report. With over 375 million voluntary carbon credits issued globally from Indian projects, the domestic Carbon Credit Trading Scheme (CCTS) seeks to retain economic and environmental value within India.The report highlights bottlenecks in project execution, noting only one-third of over 1,100 Verra-certified projects reach registration, impacting monetisation and investor confidence. Rising global climate regulations, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), are turning carbon into a direct export cost for sectors including steel, aluminium, cement, and fertilisers.Mohan Ramaswamy, Co-founder & CEO, Rubix Data Sciences, said: “A large part of carbon risk will not sit within a company’s own operations, but within its supply chain. Businesses viewing carbon only from a compliance lens may discover exposure comes indirectly through suppliers, financing, and export dependencies.”The report also warns lenders, insurers, and rating agencies to integrate carbon exposure into credit assessments, while Scope 3 emissions make supplier-level transparency critical for procurement and trade finance. India’s carbon transition is now an economic and financial shift, influencing competitiveness, financing, and enterprise value across sectors, with carbon increasingly tied to supplier evaluation and long-term commercial viability.

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