The concept of Carbon Credit came into existence as a result of increasing awareness of the need for controlling emission of greenhouse gases. Key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). Credits are like certificates awarded to countries or groups that have reduced their greenhouse gases below their emission quota.
It helps to reduce carbon footprint and helps to mitigate climate change which is a major global issue. The United Nations Framework Convention on Climate Change (UNFCCC) issues carbon credits.
Carbon Credit=1 tonne CO2 emission reduction or its Equivalent greenhouse gas
Carbon credits are measured in units of Certified Emission Reductions (CERs).
There are two distinct types of carbon credits: –
- Carbon Reduction Credits (CRCs)
- Carbon Offset Credits (COCs)
Carbon Reduction Credits (CRCs) in it carbon dioxide or other greenhouse gases emission reduction can be achieved at sources with the help of capturing excess amount of carbon dioxide gas from the sources
Carbon offset credits: in it carbon dioxide or other greenhouse gases emission reduction done outside its sours. These carbon offset credits (COCs) can be activities, by the fund projects people and groups howes working in the climate change protection. Examples: Plantation, Biomass energy, Solar energy, Wind energy or other Use of alternative energy resources. It increases the investment in green technology in developed countries.
Its sustainable method of filling the current energy demand and also helps to mitigate climate change. Significant environmental benefits including impacts on land, ecosystem, pollutants, natural resources, plants, animals and biodiversity. Reduced greenhouse gas emissions. Avoidance of the emission of pollutants and Reduced energy and water consumption. They can be traded in the market and have a monetary value so they are a great source of raven for developing nations. Despite its benefits, the carbon credit scheme has some disadvantages like Right to pollute, Lack of centralization system or global framework No effective Carbon Reduction in the atmosphere.
The carbon market in India is expanding more quickly than the BPO, biotechnology, and computer technology industries combined. The daily Carbon Credit (CCT) to Indian rupee conversion rate ranged from a high of ₹15.69 to a low of ₹14.68. According to the Indian Carbon Market Analysis Report (November 2023, 20-11), India provided 3 5. 9 4 million carbon credits between 2010 and 2022, allowing for both domestic and international trading. Due to the growing demand for carbon credits in the global market, India launched the 2023 Carbon Credit Trading Scheme (CCTS) in 2023, which includes both the voluntary and compliance sectors.
Indian businesses have implemented compliance marketplaces and voluntary offset programs like CDM (Clean Development Mechanism). In the world, Indian agencies have the second-highest number of CDM projects registered. About 106 million tonnes of CO2 emissions have been reduced by Indian units. The country has long been accustomed to and capable of maintaining a full domestic carbon market framework.
The agriculture sector in India is a new emerging area of carbon credit. Businesses and farmers would be able to register GHG mitigation projects under this program in order to receive carbon credit certificates that satisfy the necessary requirements using recognized methodology. Sustainable agricultural practices will be encouraged and financed with the support of the Framework for the Voluntary Carbon Markets in the Agriculture Sector. India has a great deal of potential for creating premium carbon credits that can be traded on a large scale and offer substantial socioeconomic benefits.
Dr. Neetu Mahawar
Department of Environmental Science