Benefits and Challenges of Carbon Credit trading in India: An Exploratory Study

Abstract

There is an increasing impetus to examine the benefits and challenges of carbon credit trading in India. Carbon credit trading is a market-based mechanism that enables organizations to trade carbon credits, which are financial instruments representing the decrease of emissions of greenhouse gases. The literature review analyzes the current state of carbon Indian trading of carbon credits and identifies the benefits and challenges of this system. The benefits of CC trading within India include incentivizing emissions reduction, promoting sustainable development, and generating revenue for project developers. However, the challenges include a lack of awareness among stakeholders, regulatory hurdles, and a lack of transparency in the trading process. The findings of the following literature review could provide insights into the current state of this sort of credit trading in India and highlights the need for increased awareness, regulatory clarity, and transparency in the system.