The dangers of Global Warming and Climate Change that the world iscreating for it self, through emissions of GHGs, are one of the primaryissues of concern in the globe. IPCC and UNFCCC have made thepeople realize this and hence not very late the world has reacted to itin the form of Kyoto Protocol and Marrekesh Accords. But the industrialworld has even sought a way to materialize this concern and haveconverted it into a huge business opportunity in the form of CarbonMarkets and Carbon Credits. Thus converting a negative externalityinto a good business opportunity in which according to Coase Theorem
“everyone is better off”.
It is not only helping the world to reduce the emissions but also lettingdeveloping countries like India to have a good business opportunity tocapitalize on it for its development.
The objective of this project is to understand the concept of carboncredits. What is it, how it is traded, what are its different mechanisms.We have also tried to find out the reasons which led to it. How thismarket was created. How does it effect the environment or in otherwords how is the environment being benefited due to it. Lookingtowards the past we have tried to find out what was the Kyoto Protocol,what led to it, what the decisions were taken. Looking at the presentscenario we have tried to find how India is capitalizing on it.