Indian Carbon Market: Prospects And Challenges

Introduction

Climate change is one of the biggest problems humanity faces in today's day and age. This issue's urgency and importance have led nations to tackle it. The heavy reliance and over-exploitation of fossil fuels have led to irreversible changes across the globe, and it is the need of the hour to, at the very least, stop further exploitation of these resources. Given that entities across the globe are so heavily dependent on fossil fuels, a blanket ban on greenhouse gas emissions by these entities shall be detrimental to the economic growth and progress of nations. Additionally, the progress made in the Renewable Energy sector is far from replacing the existing fossil fuel structures. Thus, the concept of carbon markets evolved, incentivising entities to switch to greener energy sources by selling the credits obtained to entities looking to offset their excess emissions.