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.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement