Carbon Credits

What are Carbon Credits?

Imagine a certificate representing one tonne of carbon dioxide (CO2) removed or prevented from entering the atmosphere. That’s a carbon credit! Companies that reduce their emissions below a set limit can earn these credits.

Carbon Credit Meaning in the Indian Context

India is actively developing its carbon credit market. This means companies exceeding emission limits can buy credits from those who reduce emissions more than required. It’s a win-win for environmental goals and economic incentives.

The Carbon Credit Trading Scheme (CCTS) in India

Launched in 2023, the CCTS has two parts: compliance and voluntary. Obligated entities exceeding emission limits must participate, while companies and individuals can voluntarily purchase credits to offset their carbon footprint.

Carbon Credits for UPSC Preparation

With India’s focus on climate action, understanding carbon credits is crucial for UPSC exams. It reflects the government’s commitment to sustainable development and achieving net-zero emissions.

Carbon Credit Price in India

The CCTS is still evolving, so a definitive price for carbon credits isn’t yet established. However, a well-functioning market should see a price emerge based on supply and demand.

Exploring Carbon Credit Trading in India

The CCTS offers exciting opportunities for carbon credit trading. Companies can participate in this market through designated exchanges and platforms.

Finding Carbon Credit Companies in India

As the market matures, more companies in India will specialize in carbon credit development, verification, and trading. Keep an eye on developments from organizations like the National Carbon Coalition and industry leaders.