MUMBAI, March 5 -- India's green transition is sparking a scramble in its carbon market, as companies snap up renewable energy certificates to meet government mandates or internal goals. While prices of these tradeable certificates have surged as the financial year draws to a close, rising supply has also prevented a runaway spike.

Producers of renewable power accrue renewable energy certificates (RECs), which emission-heavy sectors purchase from them. While large domestic companies buy RECs to meet their renewable consumption obligations, multinational corporations operating in India buy International Renewable Energy Certificates (I-RECs) to achieve voluntary emission goals. Indian units of MNCs from the US, Europe, Japan and South Kor...