Carbon Market: A Promising Future for India.

Abstract

As terrorism is threatening the life of humanity, same way, human nature is terrorizing the whole ecology, not only polluting the air we breathe but reaching higher and puncturing the ozone layer. Countries that blatantly pollute the environment must be held liable to at least repair the damage caused by their actions. The Kyoto Protocol decided that, developed countries should pay for their wild ways with emissions while at the same time monetarily rewarding countries with good behavior in this regard. Since developing countries can start with clean technologies, they will be rewarded by those stuck with ‘dirty’ ones. This is what makes trading in carbon credits such a great business opportunity. Foreign companies which cannot fulfill the protocol norms can buy the surplus credit from companies in other countries. This leads to a flourishing trade in Credit Emission Reduction (CER). In this paper we will study how India being one of the developing countries has ratified the Kyoto Protocol and is emerging as one of the leading Carbon traders. Keywords: Kyoto Protocol, Credit Emission Reduction, Carbon Trading, Carbon Credit, Clean Development Mechanism

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