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Carbon Dreams, Policy Gridlock: India’s Decarbonisation Push Faces Delays

India’s automotive giants are ready to trade carbon, but the government hasn't found the 'on' switch.

By Shahkar Abidi & Kiran Murali

06 Apr 2026

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Carbon Dreams, Policy Gridlock: India’s Decarbonisation Push Faces Delays

For many years, the global climate community, focusing on key sectors including green mobility has pointed toward Article 6 of the Paris Agreement as the holy grail of decarbonization. But as the agreement moves into its long-awaited operational phase, a stark reality is setting in: the path from high-level policy to actual pavement is riddled with potholes.

For the Indian automotive and energy sectors, the stakes could not be higher. The industry is currently locked in a high-stakes struggle to transform carbon compliance from a 'cost center', a burdensome tax on doing business into a 'profit center' that rewards ...

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