India’s voluntary carbon credit market reached $1.8 billion in 2025—up 340% from $410 million in 2022. Three startups now control 60% of the market: Varaha, EKI Energy, and ClimateConnect.
With the Indian Carbon Market (ICM) regulatory framework launching in 2026, understanding these players is essential.
Market Snapshot
Total market size: $1.8 billion (2025)
Growth rate: 78% CAGR (2022-2025)
Average credit price: $8.40/tonne (up from $4.20 in 2022)
Credits issued: 214 million tonnes CO2e
The Big Three
Varaha (28% market share)
Focus: Soil carbon credits from regenerative agriculture
Funding: $14M raised (Series A)
Edge: Proprietary MRV technology using satellite + soil sensors
Customers: Microsoft, Shopify, Stripe Climate
EKI Energy (18% market share)
Focus: Renewable energy and cookstove credits
Status: Publicly listed (NSE)
Edge: Scale and established registry relationships
ClimateConnect (14% market share)
Focus: Carbon credit trading platform and registry
Funding: $8M raised
Edge: Marketplace model connecting projects to buyers
What’s Changing in 2026
The Indian Carbon Market (ICM) will create a compliance market alongside the existing voluntary market. Companies in designated sectors will need to buy credits—creating guaranteed demand.
Projected impact: 2-3x increase in credit demand by 2027
Opportunities for Founders
- MRV technology (measurement, reporting, verification)
- Carbon accounting software for SMBs
- Credit quality rating and due diligence
- Sector-specific project development