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India Revises Its Carbon Credit Trading Scheme for Voluntary Players

India made a bold move in 2024 by revamping its Carbon Credit Trading Scheme (CCTS), allowing non-obligated entities to participate in the tradable carbon credits market. That means companies and individuals can voluntarily use carbon credits to address their planet-warming emissions. 

This significant revision introduces an offset mechanism, enabling these entities to register projects and obtain tradable carbon credit certificates (CCCs). Each credit represents one tonne of carbon dioxide equivalent (tCO2e). The aim is to efficiently price emissions through CCC trading and expand the voluntary carbon market.

India Opens Doors for Voluntary Carbon Credit Buyers 

In 2023, India introduced the 2023 Carbon Credit Trading Scheme (CCTS), encompassing both compliance and voluntary sectors. However, while the compliance segment is scheduled to commence in 2025-26, there is no set timeline for the launch of the voluntary carbon market. 

Under India’s revised carbon market scheme, obligated entities have the flexibility to purchase additional credits or sell surplus ones. Meanwhile, businesses can trade CCCs to offset their emissions. 

However, sectors facing challenges in meeting reduction targets, particularly those with hard-to-abate emissions, are exploring the possibility of trading energy-saving certificates (ESCerts) and renewable energy certificates (RECs) as offsets.

India emerged as a favorable destination for energy transition investments after successfully hosting the G20 Summit last year. During the same year, the country added about 17 GW of capacity, with non-fossil additions accounting for 13.8 GW. 

As seen below, renewable energy has the largest growth in terms of electricity supply capacity in the South Asian country. 

India renewable energy capacity supply 2022
Chart from Reuters

Moreover, India increased its financial support to propel the green hydrogen ecosystem and initiated preparations for its domestic carbon markets.

Key decisions regarding international participation in the carbon credit market are expected in 2024, setting the trajectory for India’s engagement. Additionally, discussions on the scope, design, and procedures of the scheme, including linkages with international standards and registries, are anticipated to be addressed.

India’s Energy Transition Priorities to Drive Climate Action

India’s move reflects its commitment to combating climate change and aligning with global efforts towards decarbonization. This year, the super-emitter is anticipated to intensify its efforts in implementing its energy transition strategy while navigating challenges related to energy security and affordability. 

India’s strategy will prioritize various aspects in power and renewables market, including:

Clean energy transition advancing; coal reliance to remain high:

  • Electricity demand to grow with GDP growth, driven by local activity due to elections and El-nino impact.
  • Total capacity addition to grow by 60% YoY; coal share in generation to decrease marginally to 73.2% in 2024.

Improving domestic fuel supply (Coal and Gas) remains top priority:

  • India expected to surpass 1 billion metric tons of domestic coal production in 2024.
  • Boost in domestic gas production due to new gas pricing reforms.

Focus on green hydrogen/ammonia:

  • Shift towards creating local demand and supporting excess costs.
  • Launch of new schemes to aggregate demand from public sector units and large consumers.

Renewables at the forefront of India’s climate policy:

  • Highest renewable capacity addition (>20 GW) expected in 2024.
  • Falling module costs and tender backlog driving record capacity addition.
  • Increasing prominence of hybrid renewable tenders and stand-alone storage tenders.
India power generation by source
Chart from Reuters

Bridging the Gap: Integrity Measures and Global Carbon Markets

The strategy also underscores the importance of integrity measures in bridging the emissions reduction gap and achieving climate goals.

In a recent report by the Carbon Market Institute, global carbon pricing mechanisms have raised an impressive $100 billion in 2022 and now covered 23% of global greenhouse gas emissions. 

Despite these achievements, current government pledges are projected to result in a temperature rise between 2.1°C and 2.8°C. Carbon markets hold considerable potential to bridge the emissions reduction gap necessary to approach a 1.5°C trajectory. 

However, there is still work to be done to bolster integrity measures and accelerate international cooperation in this regard.

In 2023, the global carbon trading markets experienced robust growth, reaching a record value of over $947 billion, representing a 2% increase from the previous year. This growth was primarily driven by higher prices in key markets such as Europe and North America, despite similar permit trading volumes.

The EU’s Emissions Trading System (ETS) maintained its position as the most valuable market, accounting for 87% of the global total. However, weakening demand from industrial buyers and the power sector towards the end of 2023 led to a bearish trend that has persisted into 2024. 

Conversely, North American prices reached record highs, and China’s national ETS also saw unprecedented price levels in 2023.

India’s revised Carbon Credit Trading Scheme (CCTS) presents a significant step forward in the global effort towards decarbonization. This, combined with the strong growth observed in the global carbon trading market, underscores a promising trajectory towards reducing greenhouse gas emissions. 

The post India Revises Its Carbon Credit Trading Scheme for Voluntary Players appeared first on Carbon Credits.

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Net zero needs nature: a carbon credit guide

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Net zero is often described as a balancing act: cut what you can, account for the rest, and reach zero on the ledger. That framing is useful, but it leaves something out. It treats every tonne of carbon as interchangeable and every route to zero as equally sound, while the science tells a more specific story.

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Carbon Footprint

Deforestation in Malawi: causes and solutions

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Malawi has lost a striking share of its forests over the past three decades. Woodlands that once covered well over a third of the country now cover less than a quarter, and the pressure on what remains is increasing. Behind those figures sit two practical questions: what is driving the loss, and what reverses it?

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What Is Climate Change? Causes, Effects & Solutions (2026)

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Climate change is real, and the evidence is everywhere, from rising sea levels to extreme weather events. While changes in Earth’s climate have occurred naturally over millennia, human activities are now the dominant force behind the current warming trend. Understanding what climate change is, what causes it, and what we can do to stop it is essential for safeguarding our planet and future generations.

Key takeaways

  • Human activities, especially burning fossil fuels, are now the dominant driver of climate change, not natural cycles like solar activity.
  • Livestock accounts for an estimated 51% of annual global greenhouse gas emissions, while deforestation is the second-largest contributor.
  • 2023-2025 was the first three-year period on record to average more than 1.5°C above pre-industrial temperatures.
  • Global fossil fuel CO2 emissions hit a record 38.1 billion tonnes in 2025, with no sign yet of a peak.
  • Nearly 30% of plant and animal species could be at risk of extinction if global temperatures keep rising.
  • Solutions like renewable energy, energy efficiency, carbon offsets, and reduced deforestation can meaningfully slow climate change today.

Climate Change in 2026: The Latest Data

The data keeps confirming the same trend: warming is accelerating, not leveling off. Here’s where things stand as of 2026, based on the most recent findings from NOAA, Copernicus, NASA, and the Global Carbon Project.

2026 climate data snapshot

  • Global temperatures: 2025 was the third-warmest year on record, behind 2024 and 2023. The past 11 years (2015–2025) are the 11 warmest ever measured, and 2023–2025 marked the first three-year period to average above 1.5°C over pre-industrial levels.
  • CO2 levels: Atmospheric CO2 hit a record monthly high of 430.5 ppm at Mauna Loa in May 2025. Global fossil fuel emissions reached a record 38.1 billion tonnes in 2025, and researchers now say the remaining carbon budget to keep warming under 1.5°C will likely be exhausted before 2030 at current emission rates.
  • Extreme weather costs: The U.S. recorded 23 separate billion-dollar weather disasters in 2025, the third-highest annual total on record, costing an estimated $115 billion. The January 2025 Los Angeles wildfires alone caused $61.2 billion in damage, making them the costliest wildfire event in U.S. history.
  • Sea level rise: Global mean sea level rose just 0.08 cm in 2025, slowed temporarily by La Niña rainfall patterns, but the long-term rate of sea level rise has more than doubled since 1993, and oceans are up roughly 10 cm (about 4 inches) since satellite records began.

None of this changes the underlying picture: the causes, effects, and solutions below remain the same, they’re just playing out faster and at greater cost each year.

What Is Climate Change?

You’ve likely heard the terms “climate change” and “global warming” used interchangeably. However, they have distinct meanings. Global warming refers specifically to the increase in the planet’s average surface temperature, largely due to greenhouse gas emissions. Climate change, on the other hand, encompasses a broader range of long-term changes in temperature, precipitation, wind patterns, and other aspects of the Earth’s climate system.

Climate change has always been part of Earth’s history, driven by natural interactions between five key systems:

  • Atmosphere (air)
  • Biosphere (living things)
  • Cryosphere (ice and permafrost)
  • Hydrosphere (water bodies)
  • Lithosphere (Earth’s crust and upper mantle)

Today, the rapid pace and scale of climate change are primarily driven by human activities.

Climate Change (infographic)

Climate change infographic showing causes, effects, and solutions

What Are the Causes of Climate Change?

Greenhouse Gases

Greenhouse gases (GHGs) trap heat in the Earth’s atmosphere. While some GHGs occur naturally, human activities have sharply increased their concentrations. Major contributors include:

  • Carbon dioxide (CO2) – Released by burning fossil fuels, deforestation, and land-use changes.
  • Methane (CH4) – Emitted from livestock, landfills, and oil and gas production.
  • Nitrous oxide (N2O) – Produced by agricultural activities and fossil fuel combustion.
  • Chlorofluorocarbons (CFCs) – Man-made chemicals used in refrigeration and aerosols.

CO2 is the most significant and long-lasting of these gases, making it the primary driver of global warming.

Make climate change your business, learn more about Terrapass carbon offsetsWhile some of these greenhouse gases, such as water vapor, are naturally occurring, others, such as CFCs, are synthetic. CO2 is released into the atmosphere from both natural and human-made causes and is one of the leading contributors to climate change. CO2 has been increasing at an alarming rate and has the potential to stay in the earth’s atmosphere for thousands of years unless it gets absorbed by the ocean, land, trees, and other sources. As CO2 production has steadily risen, though, the earth’s natural resources to absorb it have also been diminished. This is already occurring in many ways as the earth’s resources are disappearing from things like deforestation. Some studies even predict that plants and soil will be able to absorb less CO2 as the earth continues to warm, possibly accelerating climate change even further.

Solar Activity

Solar activity, as mentioned above, does play a role in the earth’s climate. While the sun does go through natural cycles, increasing and decreasing the amount of energy that it emits to the earth, it is unlikely that solar activity is a major contributor to global warming or climate change. Since scientists began to measure the sun’s energy hitting our atmosphere, there has not been a measurable upward trend.

Agriculture

There are many significant ways in which agriculture impacts climate change. From deforestation in places like the Amazon to the transportation and livestock that it takes to support agricultural efforts around the world, agriculture is responsible for a significant portion of the world’s greenhouse gas emissions. However, agriculture is also an area that is making tremendous strides to become more sustainable. As productivity increases, less carbon is being emitted to produce more food. Agriculture also has the potential to act as a carbon sink, and could eventually absorb nearly the same amount of CO2 it emits.

Deforestation

Deforestation and climate change often go hand in hand. Not only does climate change increase deforestation by way of wildfires and other extreme weather, but deforestation is also a major contributor to global warming. According to the Earth Day Network, deforestation is the second leading contributor to global greenhouse gasses. Many people and organizations fighting against climate change point to reducing deforestation as one of, if not the most, important issues that must be addressed to slow or prevent climate change.

Human Activity

According to the Environmental Protection Agency, the most significant contributor to climate change in the United States is the burning of fossil fuels for electricity, heat, and transportation. Of these factors, transportation in the form of cars, trucks, ships, trains, and planes emits the largest percentage of CO2, speeding up global warming and remaining a significant cause of climate change.

Livestock

While interconnected to many of the agricultural and deforestation issues we have already touched on, livestock in the form of cattle, sheep, pigs, and poultry play a significant role in climate change. According to one study, “Livestock and Climate Change,” livestock around the world is responsible for 51% of annual global greenhouse gas emissions.

What Are the Immediate Effects of Climate Change?

From melting glaciers to more extreme weather patterns, people everywhere are beginning to take notice of the real impacts of climate change. While some nations around the world are taking action with initiatives such as the Paris Climate Agreement, others are continuing business as usual, pumping millions of tons of carbon into the atmosphere year after year. As the 2026 data above shows, climate change continues to cause extreme weather as well as safety and economic challenges on a global scale, and the costs are climbing every year.

Extreme Weather

Changes to weather are perhaps the most noticeable effect of climate change for the average person, largely because of the financial impact severe weather events can have. In 2025 alone, the U.S. recorded 23 separate billion-dollar weather disasters totaling $115 billion in damages, continuing a run of the three highest years on record (2023, 2024, and 2025). Extreme weather influenced by climate change includes:

  • Stronger storms & hurricanes
  • Heatwaves
  • Wildfires
  • More flooding
  • Heavier droughts

Safety & Economic Challenges

In 2014 the U.S. Department of Defense released a report that stated climate change posed a severe and immediate threat to national security. According to former Secretary of Defense, Chuck Hagel, rising global temperatures, shifting precipitation patterns, climbing sea levels, and more extreme weather events intensify the challenges of global instability, hunger, poverty, and conflict.

Climate change is also likely to cause continued economic challenges in many parts of the world. Some estimates have the U.S. already spending around $240 billion annually due to human-caused climate change, and the 2025 U.S. billion-dollar disaster total of $115 billion shows those costs remain elevated year after year. Putting an exact number on the real costs of climate change is difficult, though, once you consider the staggering costs of losing natural resources like clean air and water.

What Is the Long-Term Impact of Climate Change?

The long-term impact of climate change could be absolutely devastating to the planet and everyone and everything living on it. If the world continues on its current trajectory, and 2025’s record fossil fuel emissions suggest it is, then we will likely continue to see increasing effects on everyday life.

Health

There are many ways in which climate change could impact people’s health. Depending on age, location, and economic status, climate change is already affecting the health of many and has the potential to impact millions more. According to the Center for Disease Control and Prevention, climate change-related health risks may include:

  • Heat-related illness
  • Injuries and fatalities from severe weather
  • Asthma & cardiovascular disease from air pollution
  • Respiratory problems from increased allergens
  • Diseases from poor water quality
  • Water & food supply insecurities

Negative Impact on Ecosystems

Ecosystems are interconnected webs of living organisms that help support all kinds of plant and biological life. Climate change is already changing seasonal weather patterns and disrupting food distribution for plants and animals throughout the world, potentially causing mass extinction events. Some studies estimate that nearly 30% of plant and animal species are at risk of extinction if global temperatures continue to rise.

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Water & Food Resources

Climate change could have a significant impact on food and water supplies. Severe weather and increased temperatures will continue to limit crop productivity and increase the demand for water. With food demand expected to increase by nearly 70% by 2050, the problem will likely only get worse.

Sea Levels Rising

Rising sea levels could have far-reaching effects on coastal cities and habitats. Increasing ocean temperatures and melting ice sheets have steadily contributed to the rise of sea levels on a global scale. Global sea level has risen roughly 10 cm (about 4 inches) since satellite records began in 1993, and the National Oceanic and Atmospheric Administration estimates sea levels will rise by at least 8 inches by 2100, potentially causing increased flooding and a decrease in ocean and wetland habitats.

Shrinking Ice Sheets

While contributing to rising sea levels, shrinking ice sheets present their own set of unique problems, including increased global temperatures and greenhouse gas emissions. Climate change has driven summer melt of the ice sheets covering Greenland and Antarctica to increase by nearly 30% since 1979.

Ocean Acidification

The ocean is one of the main ways in which CO2 gets absorbed. While at first glance that may sound like a net positive, the increasingly human-caused CO2 is pushing the world’s oceans to their limits and causing increased acidity. As pH levels in the ocean decrease, shellfish have difficulty reproducing, and much of the ocean’s food cycle becomes disrupted.

What Are the Solutions for Climate Change?

While the effects of climate change can seem bleak, there is still hope. By taking immediate action to curb climate change, we may never see the worst consequences. Likewise, as the world adopts cleaner, more sustainable energy solutions, there may be millions of new jobs created and billions of dollars of economic benefits. Below are some practical ways you can battle climate change, including:

  • Switching to renewable energy (solar, wind, hydro)
  • Purchasing Renewable Energy Certificates (RECs) for your home
  • Using energy-efficient appliances and insulating buildings
  • Offsetting your carbon emissions through verified programs
  • Adopting plant-based diets and reducing meat consumption
  • Minimizing food waste and single-use plastics
  • Protecting and restoring forests and wetlands
  • Supporting clean transportation options (EVs, public transit, biking)

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See How Terrapass Can Help Your Business

Companies facing growing pressure to cut emissions, whether from regulation, investors, or customers, can explore Terrapass’s business carbon offset programs to start addressing their footprint today.

Why Climate Change Matters to Everyone

Climate change isn’t just an environmental problem. It’s an everything problem. It touches every aspect of our lives:

  • Jobs and the economy: Clean energy sectors are rapidly expanding and could create millions of new jobs worldwide.
  • National security: Climate change exacerbates global instability, resource conflicts, and forced migration.
  • Public health: Clean air, safe drinking water, and stable food systems are all at risk.
  • Justice and equity: Low-income communities and developing nations are often hit hardest despite contributing the least to global emissions.
  • Future generations: The choices we make today will shape the legacy we leave behind.

By investing in climate solutions now, we not only avoid catastrophe but also unlock opportunities for innovation, resilience, and shared prosperity.

FAQ: Climate Change

What is climate change?

Climate change refers to long-term shifts in temperature, precipitation, wind patterns, and other aspects of Earth’s climate system, largely driven today by human greenhouse gas emissions.

What is the difference between climate change and global warming?

Global warming specifically means the rise in the planet’s average surface temperature. Climate change is the broader term, covering the shifts in weather patterns, sea levels, and ecosystems that result from it.

What causes climate change?

The main driver is greenhouse gas emissions, especially carbon dioxide from burning fossil fuels, along with deforestation, agriculture, and livestock. Natural factors like solar activity play a much smaller role.

What are the effects of climate change?

Effects include more extreme weather, rising sea levels, shrinking ice sheets, ocean acidification, threats to food and water supplies, and growing risks to public health.

Is climate change getting worse in 2026?

The trend lines are still moving the wrong way. 2025 was the third-warmest year on record, global fossil fuel emissions hit a new record of 38.1 billion tonnes, and 2023–2025 was the first three-year period to average above 1.5°C over pre-industrial levels.

Can climate change be reversed?

It’s generally described as something we can slow and adapt to rather than fully reverse in the near term. Cutting emissions, protecting forests, and shifting to renewable energy can still prevent the worst outcomes.

What can I do to help stop climate change?

Individual actions add up: switching to renewable energy, using energy-efficient appliances, offsetting your carbon emissions, reducing meat consumption, and supporting clean transportation all make a difference.


Brought to you by Terrapass, your trusted partner in carbon offsets and climate education.

Sources:

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The post What Is Climate Change? Causes, Effects & Solutions (2026) appeared first on Terrapass.

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