Emerging Carbon Credits Markets–

A perspective

Abstract

Climate change causes higher temperatures, changes in precipitation patterns, rising sea levels, and more frequent weather-related disasters which in turn pose risks for agriculture, food, and water supplies hitting developing countries the hardest. The recent gains in the fight against poverty, hunger and disease, and the livelihoods of billions of people in developing countries are at stake. Addressing climate change requires unprecedented global cooperation across borders. The World Bank Group is helping developing countries and contributing to a global solution by strengthening and building climate change partnerships with member governments and organizations. Under IET (International Emissions Trading) mechanism, countries can trade in the international carbon credit market. Countries with surplus credits can sell the same to countries with quantified emission limitation and reduction commitments under the Kyoto Protocol. Developed countries that have exceeded the levels can either cut down emissions, or borrow or buy carbon credits from developing countries. India being one of the developing countries has ratified the Kyoto Protocol and is emerging as one of the leading carbon traders under the Clean Development Mechanism (CDM).  But we must keep in mind that simply buying carbon offset does not take away our responsibilities, as all of us can play an important part in decreasing our carbon footprints by bringing small modifications to our daily lives. These small modifications can be of immense help in preventing further environmental degradation.