Carbon Credit Market in India: An Empirical Analysis

Abstract

The world at present faces threat of slow extinction due to havoc attributed to climate change, of which rising natural temperature of the world is main concern. Nations all over the world are expressing their concern and solidarity to curb this gigantic menace. The U.N.F.C.C.C. developed a protocol at Kyoto that associates financial implications for carbon emissions by nations. The outcome of the protocol was germination of trading in carbon market by introduction of Carbon emission reduction (C.E.R) units. The carbon trade began in our country in year 2008 with carbon being listed as a commodity on Multi Commodity Exchange of India. Many other developing countries followed same, with Chicago Climate Exchange and European Union trade as the benchmark indices of carbon trade. Carbon trade in India contributed to financial gains in tern of revenue generation by use of carbon reduction technologies as well as capital gains attributed to the trade. The paper shall try to study the impact of other similar indices suchas the greenex, I.I.P. powered and the population of our country on carbon market and vice versa.