India’s REC market cleared at Rs 340 per MWh in March 2026 with 187 lakh certificates traded across FY2025-26 — the highest-ever annual volume on IEX. Industrial consumers can use RECs to satisfy the Renewable Consumption Obligation, which rises from 29.91% of total electricity consumption in FY2024-25 to 43.33% by FY2029-30. But there is a critical distinction that matters for every plant operating under CCTS and exporting to the EU under CBAM: RECs do not reduce Scope 2 GEI under CCTS, and RECs are not recognised as
reducing embedded Scope 2 emissions under CBAM. Only physical
renewable electricity achieves all three simultaneously —
RCO compliance, CCTS GEI reduction, and CBAM Scope 2 cost
avoidance. This article maps the REC market, the RCO
framework, and the strategic decision boundary between the
two procurement routes.