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Original Article | Volume 2 Issue 3 (ACR, 2025) | Pages 823 - 831
Carbon Market in India Problems & Prospects
1
XLRI, Jamshedpur
Under a Creative Commons license
Open Access
Abstract

Climate change mitigation has become a global issue, and countries have adopted carbon markets as one of the mitigation measures for tackling climate change. India has also developed its own domestic carbon market in the form of the Indian carbon market. This paper examines the assessment of the Indian carbon market and draws lessons from the international carbon markets in the USA, Europe and China. The paper explores the opportunities and challenges for integrating the Indian carbon market with international carbon markets. The paper examines the policy and regulatory framework, the market, infrastructure, and preparedness regarding the different stakeholders and their active participation in the carbon market. The document highlights some key requirements for a stable carbon market in terms of a stable regulatory environment, market trading mechanisms, monitoring and verification requirements, liquidity concerns and the alignment of the Indian carbon market with international trading platforms. The findings of the paper provide a positive perspective for policy makers in developing a domestic carbon market in line with India's decarbonization targets

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