A carbon market in India was introduced through Energy Conservation (Amendment) Bill, 2022 to follow United Nations Climate Change Conference (COP26) as an attempt reduce fossil fuel consumption through use of non-fossil sources such as green hydrogen, green ammonia, biomass, and bioethanol as energy and feedstock.
[8] Due to India's fast growing population and economy it began to increase its fuel consumption.
India's carbon market is roughly estimated to be worth over 1.2 billion dollars.
The carbon market was made to combat climate change and keep global warming at 1.5C or lower.
The government of India established a carbon market in India, improved the Code for Energy Conservation Building and helped to build the governing council of the Bureau of Energy Efficiency through increasing members.