India plans own uniform carbon trading market

Context

India, the largest exporter of carbon credits, proposes to have its own uniform carbon market in one year as a large finance avenue for energy transition projects and emission reduction.

What is Carbon trading market?

• Carbon trading is a market-based system aimed at reducing greenhouse gases that contribute to global warming, particularly carbon dioxide emitted by burning fossil fuels.
• Carbon trade is the buying and selling of credits that permit a company or other entity to emit a certain amount of carbon dioxide.
• The value of the carbon is based on the ability of the country to store it or to prevent it from being released into the atmosphere.