The Indian government is preparing to sell carbon credits for the first time by improving the logistics operations of the Food Corporation of India (FCI) to help achieve carbon neutrality. A senior official shared that carbon credits allow companies to offset their greenhouse gas emissions, with each credit representing one metric tonne of carbon dioxide equivalent that a company can emit.
The FCI plays a significant role in India’s food management system, handling large-scale logistics for the procurement, storage, and distribution of food grains. This involves extensive transportation, which contributes to greenhouse gas emissions.
In recent months, the FCI has been modernizing its supply chain through digital transformation initiatives aimed at reducing carbon emissions. The official indicated that the FCI is exploring the possibility of trading these carbon credits.
By streamlining its supply chain operations across various levels—including markets, mills, depots, and regional offices—the FCI is not only saving costs but also cutting down on emissions by minimizing transportation distances.
Globally, governments are committed to limiting global warming and achieving net-zero carbon emissions by 2050, aligning with the goals of the Paris Agreement. India pledged to reduce the emissions intensity of its GDP by 45% from 2005 levels by 2030. This commitment led to the creation of the Carbon Credit Trading Scheme (CCTS), which was notified last June and is expected to be implemented by 2026.
Currently, most carbon trading in India is voluntary, lacking strong incentives for local companies. However, the government plans to introduce regulations by 2026 to establish emission targets for companies.
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