The Indian government has taken a significant step towards establishing a carbon market in the country by approving a detailed procedure for an offset mechanism across eight different segments. This mechanism includes provisions for renewable energy, green hydrogen production, industrial energy efficiency, landfill methane recovery, and mangrove afforestation and reforestation, among others. The offset mechanism allows entities to compensate for their greenhouse gas emissions by investing in projects that either reduce, remove, or avoid emissions elsewhere. By participating in these projects, entities can earn carbon credits. This move is particularly beneficial for businesses, industries, and organizations that are not covered under the compliance mechanism, as it provides them with an opportunity to contribute to climate action and be recognized for their emission reductions. The government's approval of this framework is seen as a key milestone in the operationalization of the Offset Mechanism under the Indian Carbon Market. The Offset Mechanism was introduced as part of the Carbon Credit Trading Scheme notified by the government in June 2023, aiming to lay the foundation for the Indian Carbon Market. The mechanism allows for the voluntary participation of non-obligated entities in climate mitigation projects, encouraging the development of initiatives that reduce, remove, or avoid greenhouse gas emissions. This approach is expected to incentivize actions in sectors not covered under the compliance mechanism, paving the way for a more comprehensive climate change mitigation strategy in India. The approved methodologies are anticipated to support a diverse range of climate-friendly projects, leading to the generation of voluntary carbon credits that can contribute to the country's emission reduction goals.