Carbon Credits: Global Dynamics and India’s Emerging Position in Climate Market
by Farin Khatoon. A Comparative View of Carbon Credit Systems: India’s Emerging Market vs. Global Leaders in Carbon Trading Carbon credits represent a critical market-based mechanism for reducing global greenhouse gas (GHG) emissions. As the world intensifies efforts to combat climate change, nations are leveraging carbon credit systems within both compliance and voluntary frameworks. This blog provides a comprehensive overview of carbon credits and their operational mechanisms. It also compares global practices with India’s evolving carbon market framework, drawing on primary sources and recent policy developments. Climate change mitigation necessitates innovative mechanisms that integrate environmental and economic priorities. Carbon credits, functioning under cap-and-trade or voluntary systems, have emerged as such instruments, enabling entities to offset emissions by investing in sustainable projects. While developed economies have operationalized structured emission trading schem...
