Carbon Credit Knowledge Hub
This is the carbon credit knowledge hub from KMS Group, Kanaka Management Services Private Limited, a carbon credit consultancy and project developer based in Bengaluru, India, working in carbon markets since 2007. Our strength is the technical side of this work, building and running large carbon projects from feasibility through to issued credits. This hub answers the questions project owners, corporate buyers and investors ask us most: what a carbon credit is, how carbon credit project development works, how forestry and REDD+ projects are built and verified, what makes a credit high integrity and how the Indian Carbon Market under the CCTS connects to the international voluntary market and Article 6 of the Paris Agreement. Since 2007 we have advised 80+ clients across 60+ methodologies under Verra, Gold Standard, the CDM and other standards.
The CDM, established under the Kyoto Protocol of the UNFCCC, was the largest global offset (or crediting) mechanism for greenhouse gases (GHGs). It provides the framework for developing country projects that reduce, avoid or sequester carbon emissions to earn Certified Emission Reductions (CERs), tradable offsets (also called carbon credits) which can be sold to enhance a project’s financial viability https://cdm.unfccc.int/faq/index.html. Another Kyoto mechanism, Joint Implementation (JI) https://ji.unfccc.int/index.html, similarly provides for Emission Reduction Units (ERUs) to be sold by economies in transition.
About carbon credits
A carbon credit is a tradable certificate that represents one tonne of carbon dioxide equivalent reduced, removed or avoided by a verified project. One credit equals one tonne. A buyer who retires a credit claims that tonne against their own emissions. A credit holds value only because an independent body has checked that the tonne is real, measurable and additional. We turn an emission reduction activity into issued, sellable credits for project owners. We help buyers source credits that survive due diligence.
Regulator
Regulator: the Government entity (or entities) mandated by law to regulate and govern the carbon market. Functions include establishing the parameters for the market and its regulation, including defining the scope of the market and the rules for creating and distributing emission units, establishing registries, issuing credits, and setting rules for enforcement, trading, and accrediting certain types of market participants such as auditors. The regulatory role includes: conducting inventories; establishing the cap; allocating allowances; setting and enforcing penalties; and in some cases, establishing linkages with other ETSs and/or offset mechanisms.
Covered Entity
Covered Entity: an entity required to comply with the emissions cap.
Seller: a primary or secondary seller of allowances. In the “primary” market, a covered entity whose emissions are lower than its allocation may sell excess allowances. After the initial purchase and sale, “secondary” market participants may buy or sell emission units on the market, subject to established rules. Sellers must demonstrate legal ownership, which they transfer to the buyers. Buyer: a purchaser of allowances. This can be for compliance, market making, speculation, or voluntary purposes.
Traders / market makers
Traders / market makers: entities offering trading platforms for allowances, execution of trades on behalf of buyers and sellers, and/or the purchase or sale of allowances on their own account or on behalf of others. Other stakeholders: In addition, public and private stakeholders may include government negotiators, government agencies, public and/or private auditors, financial institutions, technology vendors, the community affected by the activities of a covered entity/project, Nongovernment Organizations (NGOs) and consultants.
Other relevant terminologies associated with carbon credit markets can be accessed here
https://www.investopedia.com/terms/c/carbon_credit.asp
Carbon credit basics
What is a carbon credit?
A carbon credit is a tradable certificate that represents one tonne of carbon dioxide equivalent (tCO2e) reduced, removed or avoided by a verified project. One credit equals one tonne. A buyer who retires a credit is claiming that tonne against their own emissions. The credit holds value only because an independent body checked that the tonne is real, measurable and would not have happened anyway. Without that independent check, a credit has no real basis.
What is the difference between a carbon credit and a carbon offset?
The terms get used interchangeably, but there is a useful distinction. A carbon credit is the instrument, one verified tonne sitting in a registry. An offset is what you do with it. You retire a credit to compensate for a tonne you emitted somewhere else. So every offset is a credit being used. A credit only becomes an offset at the moment of retirement.
What does it mean to retire a carbon credit?
Retirement is the final step. The credit is permanently cancelled in the registry so no one else can claim or resell it. That cancellation, recorded against a named beneficiary, is what lets a company say a tonne has been offset. A credit that has been bought but not retired is still tradable and cannot yet be claimed. We handle retirements for corporate buyers and provide the registry retirement record as proof.
Why do carbon credits have different prices?
Price tracks quality, type and vintage. A recent nature-based removal with strong co-benefits sells for far more than an old avoidance credit from a saturated category. Project type, registry, vintage, country, co-benefits and the integrity rating all move the number. Older or lower demand credits often trade at a few dollars per tonne, while premium removals and high-integrity nature-based credits trade at many multiples of that. There is no single price, which is part of why due diligence matters.
What is a carbon credit vintage?
The vintage is the year the emission reduction or removal actually happened. A 2024 vintage credit comes from tonnes abated in 2024. Buyers often prefer recent vintages because they reflect current practice and current monitoring. Older vintages from certain categories have also lost market trust. Vintage sits alongside project type and registry as one of the first things a serious buyer checks.
Are carbon credits the same as a carbon tax or CBAM?
No. A carbon tax is a government charge on emissions. CBAM, the EU Carbon Border Adjustment Mechanism, is a border charge on the embedded carbon in certain imports. Carbon credits are market instruments you generate or buy. They share a purpose, putting a price on carbon, but they are different tools with different rules. For Indian exporters CBAM is now a live cost, which is part of why a domestic carbon market matters.
Carbon credit project development
What is carbon credit project development?
It is the full process of turning an emission reduction or removal activity into issued, sellable credits. The arc runs from feasibility and methodology selection, through baseline setting and project design documentation, to validation by an independent auditor, then monitoring, verification and finally issuance in the registry. Each stage carries its own evidence requirements. Miss one and the credits do not issue. We advise project owners across this arc, from the first feasibility question to the issued credit.
How long does it take to develop a carbon credit project?
Longer than most people expect. A straightforward project under an existing methodology can reach first issuance in roughly 12 to 24 months. A complex nature-based project takes longer. So does one that needs a new methodology. The slow parts are usually baseline data, validation scheduling and the first monitoring period. We set a realistic timeline at the start rather than an optimistic one.
What makes a project eligible to generate carbon credits?
Four things have to hold. The activity must cut, remove or avoid greenhouse gas emissions. It must be additional, meaning it would not have happened without the credit revenue. It must fit an approved methodology under a recognised standard. And it must be measurable and monitorable over time. If any one fails, the project does not qualify. A feasibility review is the low-cost way to find that out before you spend on documentation.
What is a feasibility study and why do I need one first?
A feasibility study is the go or no-go check. It tests whether your activity is additional, which methodology fits, what volume of credits it might produce, what the development will cost and whether the economics work at a realistic credit price. It costs far less than full project documentation. Without it, projects that were never going to register still run up development cost. We run this assessment before recommending any project proceed.
What is additionality?
Additionality is the test that the emission cuts would not have happened anyway. If a project would have gone ahead on its own commercial merits, the credits are not additional and most standards reject them. Proving it usually means showing the project faces a financial, technical or regulatory barrier that carbon revenue overcomes. It is the single most scrutinised question in development and the one critics raise first.
What is a baseline?
The baseline is the counterfactual, what emissions would have been without the project. Credits are the gap between that baseline and what actually happened. Set the baseline too high and the project looks like it cut more than it did, which is the exact failure that has damaged trust in some older categories. A conservative, defensible baseline is the backbone of a credible project.
What is MRV?
MRV stands for monitoring, reporting and verification. Monitoring is the ongoing data collection on the ground. Reporting is how you submit it. Verification is the independent audit that confirms it. MRV is what converts an activity into issued credits every cycle. Weak MRV is a common point of failure. Consistent, repeatable MRV is what keeps a project issuing rather than stalling.
What is leakage?
Leakage is when a project pushes emissions somewhere else instead of cutting them. Protect one forest and the logging shifts to the next valley. The emissions did not disappear, they relocated. Good methodologies make you estimate leakage and discount your credits for it. Ignoring it is one of the most common ways headline credit numbers end up overstating the real climate benefit.
What is permanence and why does it matter for forestry projects?
Permanence is whether the stored carbon stays stored. A tonne locked in a forest can be released by fire, disease or felling, which makes nature-based storage reversible in a way that destroying a potent industrial gas is not. Registries manage this with buffer pools, holding a share of every project’s credits in reserve to cover reversals. Permanence risk is central to pricing and to due diligence on any land-based project.
Carbon standards, registries and methodologies
What is a carbon standard?
A carbon standard is the rulebook a project follows to be credible. It defines the methodologies, the additionality tests, the MRV requirements and the issuance rules. The major voluntary standards and registries include the Verified Carbon Standard (VCS) run by Verra, Gold Standard, the American Carbon Registry, the Climate Action Reserve, Plan Vivo, the Global Carbon Council, Cercarbono and the BioCarbon Standard. For jurisdictional REDD+ there is ART (the Architecture for REDD+ Transactions), with its TREES standard. For engineered and durable removals like biochar and BECCS there is Puro.earth. A project registered under a recognised standard carries far more market trust than an uncertified claim. The right standard depends on the project type, the geography and the buyers you are targeting.
What is a carbon registry?
A registry is the database that issues, holds, transfers and retires credits and gives each one a serial number. It is the system of record that stops the same tonne being sold twice. Verra runs the registry for VCS, Gold Standard runs its own and so on. When you buy a credit, the registry transfer and the retirement record are your proof of ownership and of the climate claim.
What is the difference between Verra VCS and Gold Standard?
Both are leading voluntary standards and both are credible, but they lean differently. Verra’s VCS is the largest by volume and covers the widest range of project types, from forestry to industrial. Gold Standard puts heavier weight on sustainable development co-benefits and community outcomes and is strong in clean cooking and community energy. Which one fits depends on your project type and your buyers. We help owners pick the standard that matches the project, not the other way round.
What is a methodology?
A methodology is the detailed recipe for a specific project type: how to set the baseline, prove additionality, measure reductions and monitor them. A solar methodology looks nothing like a mangrove restoration methodology. Choosing the right methodology and confirming the project fits its conditions is one of the highest-leverage technical calls in development. It is work we have done across 60+ methodologies since 2007.
What is the CDM and is it still relevant?
The Clean Development Mechanism was the Kyoto Protocol’s crediting system. India was one of its largest hosts. Under the Paris Agreement it is being wound down and replaced. Eligible CDM projects can transition into the new Article 6.4 mechanism if they meet the updated rules, while the standalone CDM no longer issues as it once did. If you hold legacy CDM assets, the live question is whether and how they transition.
Which standard is best for my project?
There is no universal best. The right standard depends on your project type, your country, the methodologies available, your target buyers and the co-benefits you can credibly show. A community cookstove project and a grid-connected renewable project belong under different standards. We assess the fit at the feasibility stage and recommend the one that gives the project the cleanest path to issuance and the strongest market reception.
Forestry, REDD+ and nature-based carbon projects
What are nature-based carbon projects?
Nature-based carbon projects cut or remove emissions by protecting or restoring natural systems. Forests, mangroves, wetlands, grasslands and farmland soils all store carbon. A well-run project keeps more of it locked away than would have happened otherwise. The category spans afforestation, reforestation, avoided deforestation, agroforestry, blue carbon in coastal ecosystems and soil carbon on farmland. These projects tend to carry strong co-benefits for biodiversity and local communities, which is part of why buyers pay a premium for them. They are also among the hardest to measure and to prove, which is where rigorous baselines and monitoring earn their place.
What is REDD+?
REDD+ stands for Reducing Emissions from Deforestation and forest Degradation, with the plus covering conservation, sustainable forest management and the enhancement of forest carbon stocks. In practice a project earns credits for keeping a forest standing that was genuinely at risk of being cleared. The hard part is the baseline, proving how much deforestation would have happened without the project, because that figure decides how many credits issue. REDD+ has drawn heavy scrutiny on exactly this point, which is why a conservative, defensible baseline and strong ongoing monitoring are not optional. Done properly it is among the higher-impact project types in the market and among the hardest to do well.
Does KMS Group develop REDD+ projects?
Yes. REDD+ is one of our areas of deep specialisation. It is among the most complex and demanding project types in carbon markets, which is why relatively few developers take it on. We do, in India and internationally, across the full arc from feasibility and baseline through to issuance. The complexity that puts others off, the baseline rigour, the decades of monitoring, the integrity scrutiny, is the work we have built the capability to handle. If you own or manage forest land with REDD+ potential, this is a conversation we are well placed to have.
Why are forestry and REDD+ projects considered complex?
Several things stack up. The baseline is genuinely hard to set, because you are estimating deforestation that did not happen. Permanence is a real risk, since a forest can burn or be cleared years after credits issue, so registries hold a buffer pool against reversals. Leakage has to be tracked, in case protection in one place simply pushes logging to the next. And the monitoring runs for decades, not months. Each of these is a point where a weak project loses credibility. Handling them well is demanding technical work, which is why many developers stay with simpler project types.
What is forest carbon inventory and measurement?
Forest carbon inventory is the measurement of how much carbon a forest actually holds, in the trees, the deadwood, the leaf litter and the soil. It is the ground truth a forestry project stands on. Done the traditional way it means field plots and manual sampling, slow and costly across large areas. We combine field measurement with remote sensing and GIS so the inventory stays accurate and still scales over forest that is hard to reach on foot. A solid inventory is what lets the baseline, the issuance and every later monitoring cycle stand up to verification.
What types of nature-based projects can earn carbon credits?
The main categories are afforestation and reforestation, avoided deforestation through REDD+, agroforestry, blue carbon in mangroves and coastal wetlands, soil carbon in farmland. Each has its own methodology, its own measurement challenge and its own buyer appeal. Which one fits depends on the land, the ownership, the local context and what can be credibly measured and held in place over time. We work that out at the feasibility stage rather than assume a project type before the evidence is in.
MRV, digital MRV and verification support
What is digital MRV (dMRV)?
Digital MRV is the modern form of monitoring, reporting and verification, where data is gathered and processed through technology rather than manual fieldwork alone. Instead of relying only on people walking a site, it draws on satellite imagery, sensors, GIS layers and automated data processing to track a project continuously. That makes monitoring faster, more affordable across large areas and more consistent, because the data trail is auditable rather than dependent on a single site visit. For land-based projects spread over thousands of hectares, dMRV is often the only practical way to monitor at the accuracy a credible credit demands.
How does KMS Group use remote sensing and GIS in carbon projects?
The foundation is the fieldwork and the method. Trained people measure forest plots, build the carbon inventory and document every step to the standard an auditor will hold us to. Remote sensing from satellite and aerial imagery extends that measurement across a whole project area, so we are not relying on walking every hectare. GIS ties the spatial data into maps and layers we can analyse and verify. We also lean on machine-learning models to cross-check the data, flag change and stress-test our own numbers, which speeds the work and catches what a manual pass can miss. The models support the work. They do not replace the judgement. In technical carbon work the number has to be right. That accuracy sits with us, not with a tool.
What is the difference between validation and verification?
They happen at different stages and answer different questions. Validation is the upfront check, an independent body confirms the project design and methodology are sound before it starts issuing. Verification is the recurring check, the same kind of independent body confirms that the emission reductions a project claims actually happened, cycle after cycle. Both are carried out by accredited validation and verification bodies, known as VVBs. Both must be independent of the project to mean anything. A credit that has been through proper validation and verification is worth far more than one that has not.
Does KMS Group provide MRV and verification support?
Yes. We run the full MRV process for projects, the monitoring, the data, the reporting that every issuance cycle depends on. Verification itself has to be carried out by an independent accredited body, so what we do there is manage and coordinate it, preparing the project, handling the documentation and working with the verifier through to a clean result. Long-standing relationships with established verification bodies also mean we can often secure competitive rates and workable timelines, which matters when verification is one of the larger recurring costs a project carries. The aim is a verified credit with a documentation trail that holds up later.
Carbon credit quality, integrity and due diligence
What makes a carbon credit high integrity?
A high-integrity credit holds up under scrutiny on every axis: real and additional reductions, a conservative baseline, sound MRV, managed permanence, leakage properly accounted for and no double counting. The Integrity Council for the Voluntary Carbon Market has published its Core Carbon Principles as a benchmark for exactly this. Integrity is not a label. It is something you verify, credit by credit.
How do I know if a carbon credit is good quality?
You check the evidence, not the marketing. Look at the project documentation, the registry record, the methodology, the vintage, the auditor and any independent integrity rating. Ratings agencies now score credits. The registry shows the full issuance and retirement history. A seller who cannot produce that documentation is a warning in itself. We run this due diligence for buyers before they commit capital.
What is double counting and how is it avoided?
Double counting is the same tonne being claimed twice. That happens either when two buyers both claim a credit or when a company and its host country both count the same tonne toward their targets. The serial-numbered registry and permanent retirement prevent the first kind. Under Article 6, a step called a corresponding adjustment prevents the second, by having the host country subtract the transferred tonne from its own books. It is a real risk and the controls exist because of it.
What are the risks in buying carbon credits?
The real risks: the credit may not represent a real or additional tonne, the project may reverse, the baseline may have been inflated, the vintage may be stale or the project may later draw criticism and create reputational risk. None of this means avoid the market. It means buy with due diligence, documentation and a clear paper trail. The buyers who run into trouble are usually the ones who bought on price alone.
How should a company conduct carbon credit due diligence?
Start with the documentation and the registry record, then test the project against the integrity questions: additionality, baseline, MRV, permanence, leakage and double counting. Check the auditor, the methodology and any independent rating. Confirm the retirement will be recorded against your name. For higher-value purchases an independent review is worth the cost. We do this work for buyers so the climate claim survives scrutiny later.
What is greenwashing and how do I avoid it in carbon claims?
Greenwashing is claiming more environmental benefit than the evidence supports. In carbon it usually looks like a vague offset claim, credits from weak categories used to label something carbon neutral or cheap volume bought with no diligence. The defence is specificity. Name the project, the registry, the vintage and the retirement record. Make a claim the documentation can back. A claim you cannot evidence is one you should not make.
Buying and selling carbon credits
How does a company buy carbon credits?
A buyer defines what they need, which is volume, project type, vintage, budget and the quality bar, then sources credits that fit, runs due diligence, agrees terms and takes delivery through a registry transfer. Retirement follows when the company makes its claim. You can buy spot or contract ahead of issuance for future vintage supply. We source and broker credits for buyers and handle the diligence and the registry steps.
Does KMS Group have carbon credits available to buy now?
Yes. We hold and represent an inventory of issued credits available for purchase, including forestry and nature-based credits. We are actively placing volume with buyers. If you are a corporate buyer or an investor looking for credits, tell us your target volume, the project type and vintage you want and the quality bar you work to. We will match supply that fits then handle the registry transfer and retirement. Availability and pricing move with the market, so the fastest way to know what we can offer today is to ask.
How does a project owner sell carbon credits?
Once credits are issued in the registry, the owner can sell them spot to a buyer, contract them forward before issuance or place them through a broker. Pricing depends on type, vintage, volume and quality. The mechanics are a registry transfer against payment. We connect verified projects with credible buyers and advise owners on pricing and terms so they are not selling blind into the market.
What is the difference between the voluntary and compliance carbon markets?
In a compliance market a government requires covered companies to hold credits or allowances against a legal emissions obligation. India’s CCTS compliance mechanism and the EU ETS are examples. In the voluntary market companies buy credits by choice, usually for net-zero commitments or reputation, with no legal requirement. The two markets have different buyers, prices and rules. A credit valid in one is not automatically valid in the other.
What is a spot purchase versus a forward contract?
A spot purchase is buying credits that already exist in the registry, available now. A forward contract is agreeing today to buy credits a project will issue later, often at a set price. Forwards give projects early capital and give buyers secured future supply, but they carry delivery risk if the project under-issues. Which suits you depends on your timeline and your appetite for that risk.
Can Indian project owners sell credits to international buyers?
Yes. Credits issued under international voluntary standards like Verra or Gold Standard can be sold to buyers anywhere, subject to the registry’s transfer rules. Where credits are meant to count toward another country’s national target under Article 6, a corresponding adjustment by India would be required. That framework is still developing. For voluntary corporate buyers, Indian credits have long been part of the global market.
What documents should I have ready before buying or selling?
For buyers: your target volume, vintage, project type preference, budget and quality bar. For sellers: the registry issuance record, the project documentation, the validation and verification reports, the methodology and the available volume and vintage. The cleaner the documentation, the faster and better the transaction. We tell you exactly what to gather for your specific case.
The India carbon market (CCTS)
What is the Carbon Credit Trading Scheme (CCTS)?
The CCTS is India’s national carbon market, notified in 2023 under the Energy Conservation (Amendment) Act 2022. It runs on two pillars. A compliance mechanism sets greenhouse gas emission intensity targets for energy-intensive industries. An offset mechanism lets other entities register voluntary emission reduction projects. The Bureau of Energy Efficiency administers it, alongside the Ministry of Power and the environment ministry. Together these form the Indian Carbon Market, the ICM.
What is the difference between the CCTS compliance mechanism and the offset mechanism?
The compliance mechanism is mandatory. It assigns legally binding emission intensity targets to large industrial entities in sectors like cement, aluminium, steel and refining. They must meet them or buy Carbon Credit Certificates to cover the shortfall. The offset mechanism is voluntary and open to entities outside that obligation, who can register projects in areas such as energy, agriculture, waste and forestry to earn certificates. One is an obligation, the other an opportunity.
Who has to comply with the CCTS?
Large energy-intensive industrial facilities in the notified sectors. The first phase covers nine notified sectors, including aluminium, cement, chlor-alkali, pulp and paper, petroleum refining, petrochemicals, textiles, fertiliser and iron and steel, together accounting for a meaningful share of India’s industrial emissions. Obligations are being implemented in stages. If your facility sits in a notified sector above the threshold, compliance is a legal obligation, not a choice. The covered list is set to expand in later phases.
What is a Carbon Credit Certificate (CCC)?
A CCC is the unit of India’s carbon market, equal to one tonne of CO2 equivalent. Industrial entities that beat their emission intensity target earn CCCs. Those that miss it must buy and surrender them. Offset-mechanism projects can be issued them too. CCCs are designed to trade through India’s power exchanges under regulatory oversight. The certificate is how the scheme puts a domestic price on a tonne of carbon.
Can my company register a voluntary project under the CCTS offset mechanism?
If your entity is not a covered obligated industry, yes, through the offset mechanism. Eligible activity areas in the first phase include energy, industry, agriculture, waste handling, forestry and transport, with more planned. Projects need an approved methodology and have to meet the start-date and additionality rules. We assess whether your activity qualifies and guide the registration.
How does the Indian CCTS relate to international markets like Verra?
They are separate systems. A CCC under the Indian scheme is a domestic instrument, while a Verra or Gold Standard credit is an international voluntary one. The two are not interchangeable today. An Indian project owner has to decide which market to target, because the methodology, registry and buyers differ. Some activities suit the domestic offset mechanism, others the international voluntary market. We help owners choose the right one rather than assume.
Does CBAM affect Indian companies and how do carbon credits help?
The EU Carbon Border Adjustment Mechanism puts a carbon cost on certain imports into the EU, which reaches Indian exporters in sectors such as steel, aluminium, cement and fertilisers. A domestic carbon price, paid at home through the CCTS, can reduce what an exporter owes at the EU border rather than handing that value to Europe. The interaction is still being worked out at policy level, but for affected exporters it is already a board-level cost question.
International carbon markets and Article 6
What is Article 6 of the Paris Agreement?
Article 6 is the part of the Paris Agreement that lets countries cooperate on cutting emissions through carbon markets. After nearly a decade of negotiation the core rules were agreed at COP29 in late 2024. It has two market routes. Article 6.2 covers bilateral trades between countries. Article 6.4 sets up a centralised mechanism overseen by the UN. It is the framework that gives international carbon transfers official standing under the Paris regime.
What is the difference between Article 6.2 and Article 6.4?
Article 6.2 is country-to-country. Two governments agree to transfer emission reductions called ITMOs, internationally transferred mitigation outcomes. Each government then accounts for them against its national target. Article 6.4 is centralised, a single UN-supervised mechanism that issues credits projects can sell. It is the successor to the old Clean Development Mechanism. Put simply, 6.2 is bilateral and government-led, 6.4 is multilateral and UN-run.
What is the PACM and how does it relate to the CDM?
PACM is the Paris Agreement Crediting Mechanism, the centralised system created under Article 6.4. It takes over from the Kyoto-era Clean Development Mechanism, under which India was a major credit host. Eligible CDM projects can transition into PACM if they meet the new, stricter rules. The mechanism is now operational and has started issuing credits, beginning with projects transitioning from the CDM.
What is a corresponding adjustment?
A corresponding adjustment is the accounting step that stops a tonne being counted twice across borders. When a country transfers an emission reduction to another country under Article 6, it adds that tonne back to its own emissions so only the receiving party can claim it. It is the integrity mechanism at the heart of Article 6. Whether a credit carries one materially affects what a buyer can claim.
Can India trade carbon credits internationally under Article 6?
India is building its framework to participate in Article 6. The policy and institutional groundwork is being put in place. The clearest near-term route is Article 6.2 cooperation through bilateral agreements, though the detailed arrangements are still developing. For now India’s most active international channel remains the voluntary market under standards like Verra and Gold Standard. We track this closely because it directly affects where an Indian project should be registered.
Why would a company buy international credits instead of domestic ones?
It comes down to the claim they need to make and the buyers or regulators they answer to. A multinational with a global net-zero commitment often wants internationally recognised voluntary credits with a consistent standard behind them. A company managing a domestic compliance obligation needs the instrument its own regulator accepts. The two are not interchangeable, so the starting question is always what the credit is for.
Environmental attributes
What is an environmental attribute?
An environmental attribute is the certified environmental benefit of an activity, separated out so it can be owned and traded on its own. A carbon credit is one kind, representing a tonne of CO2e. A renewable energy certificate is another, representing the green quality of a unit of electricity. The physical activity and its environmental attribute can be sold separately, which is what lets these markets exist.
What is the difference between a carbon credit and a renewable energy certificate (REC)?
They measure different things. A carbon credit represents one tonne of CO2 equivalent reduced, removed or avoided. A REC represents one unit of electricity, usually a megawatt-hour, generated from a renewable source. Internationally the same instrument is called an I-REC. A solar plant might earn RECs for its clean power and, separately, carbon credits for displacing fossil generation, but you generally cannot claim the same benefit twice across both. Buyers should be clear which instrument meets their goal.
What are I-RECs?
I-RECs are International Renewable Energy Certificates, a globally recognised standard for tracking renewable electricity. Each one certifies that a defined quantity of power came from a renewable source. Companies buy them to back clean energy claims for their operations. India is an active I-REC market. They sit alongside carbon credits in the broader family of environmental attributes, but they answer the electricity question, not the tonne question.
Can a project earn both carbon credits and RECs?
Sometimes, but with care. A renewable project produces clean electricity, which can earn RECs. It may also displace fossil generation, which under some methodologies can earn carbon credits. The rule that matters is no double claiming of the same benefit. Whether a specific project can stack both and under which standards is a methodology question worth checking before you assume the extra revenue. We assess this case by case.
Working with KMS Group
What does KMS Group do?
KMS Group, Kanaka Management Services Private Limited, is a carbon credit consultancy based in Bengaluru. We have worked in carbon markets since 2007. Our strength is technical: we support project owners through development, run the measurement and documentation that issuance depends on and take on large, complex projects that need that depth. We also advise corporate buyers, source and broker credits and run due diligence on credit quality, across Indian and international markets. Over that time we have advised 80+ clients and worked across 60+ methodologies.
Is KMS Group a carbon credit consultant in India?
Yes. We are a Bengaluru-based carbon credit consultancy operating since 2007, advising clients on carbon credits, project development and carbon asset strategy in India and internationally. Indian project owners and corporate buyers are a core part of who we work with. We know the domestic market, the registries and the developing CCTS landscape.
What experience and track record does KMS Group have?
We have worked in carbon markets since 2007, advising 80+ clients across 60+ methodologies. That experience is what lets us match a project to the right methodology and structure it to earn the full credit volume it legitimately qualifies for.
A project we developed has been independently rated investment grade by Sylvera, one of the carbon market’s main ratings agencies, which scores projects from AAA to D. We have further projects in development. The work has also earned 25+ awards in the Environmental Finance market rankings, 19 of them outright wins.
What kinds of carbon projects can KMS Group advise on?
We advise across the main project categories, matched to the methodology and standard that fit each. On the energy side that means solar, wind, small hydro and biomass power, industrial energy efficiency, fuel switching and clean cooking. On the nature side it means afforestation and reforestation, REDD+, improved forest management, agroforestry, blue carbon in mangroves and coastal wetlands, plus soil carbon on farmland. We also work on methane and waste projects like landfill gas, biogas, wastewater and composting. We cover industrial gas abatement such as N2O and HFCs, plus the newer durable removal routes like biochar as the standards for them mature. Which of these fits depends on the activity, the location, the ownership and the economics, which is what a feasibility review settles. With 60+ methodologies behind us, matching a project to the right one is the part we are strongest at. We assess your specific case rather than push a fixed product.
Does KMS Group help with buying and selling carbon credits?
Yes. For buyers we source credits, run due diligence and handle the registry transfer and retirement. For sellers and project owners we connect verified credits with credible buyers and advise on pricing and terms. Either way the aim is a clean transaction with a documentation trail that holds up later. To discuss a purchase or a sale, reach us through the contact page.
Enquiries and next steps
How do I start a carbon credit project with KMS Group?
Start with a short description of your activity, its location, who owns it and what stage it is at. We run a feasibility review to test whether it can register and what volume it might produce, then map the path from there. The feasibility check comes before any commitment to full development. Reach us through the contact page.
What information should I include in a project enquiry?
The more specific you are, the faster we can help. Useful details: project location, project type, ownership, the current stage, any registry or standard preference, estimated emission reductions or removals, expected volume and vintage, plus whether your enquiry is about developing, buying, selling or assessing credits. If you only have some of this, send what you have.
I want to buy carbon credits. What should I tell you?
Tell us your target volume, the vintage you want, any project type or country preference, your budget range and your quality bar. With that we can source credits that fit, run the due diligence and handle the registry steps. If you are buying to support a public net-zero claim, say so, because the documentation standard for that is higher.
How can I contact KMS Group?
Reach us through the enquiry form on our contact page. Include the project or purchase details above so we can respond with something useful rather than a generic reply. We work with project owners and corporate buyers across India and internationally.
FEW USEFUL LINKS:
REDD+ Resource Hub:
UNFCCC CDM Resources:
VCS Documentation and Guides:
International Carbon Registry Overview:
Gold Standard References:
Plan Vivo Resources:
CCBA Tools and Standards:
- Climate Community Biodiversity Alliance (CCBA) Website
- CCB Standards Resources
- CCB Tools and Guidelines
GCC (Global Carbon Council) Resources:
Climate Bonds Initiative Resources:
CERCARBONO Documentation:
ISO Standards and Accreditation Resources:
Social Carbon Resources:
Bio Carbon Standards Resources:
AA 1000 Sustainability Assurance Resources:
Supplementary References

