CARBON CREDIT TRADING IN INDIA: LEGAL FRAMEWORK AND ENVIRONMENTAL JUSTICE

Governments and businesses throughout the world are investigating market-based systems as potential ways to lower greenhouse gas emissions while maintaining economic growth in response to the growing threat of climate change. Carbon credit trading has become a vital tool in India, where energy-intensive industries including transportation, steel, cement, and power generation account for a significant portion of the country’s emissions. The Indian Carbon Market (ICM) framework, created by the Energy Conservation (Amendment) Act of 2022, studies the empirical data and management consequences related to carbon credit trading. It examines the effectiveness of market mechanisms like the Perform, Achieve, and Trade (PAT) plan, which shows significant reductions in emissions and energy consumption, and compares them to global models like the European Union Emissions Trading System (EU ETS). This study aims to provide insights into how strong legislative frameworks and aggressive business practices can propel India’s low-carbon transition by assessing the financial and environmental advantages of carbon trading as well as its practical difficulties.