Global Climate Change and Indian Carbon Market

15 Pages Posted: 26 Aug 2012

See all articles by Neeraj Singhal

Neeraj Singhal

Management Development Institute Murshidabad; Management Development Institute

Himani Gupta

Indian Institute of Foreign Trade

Date Written: July 29, 2012

Abstract

Carbon Credits have the potential to be the next great currency. It might be almost mandatory to have Carbon Credits one day and there seems to be no alternative world currency that escapes local political intervention that we can all trust. Carbon Credits are going to hold the same value wherever you are because CO2 has a global impact. World carbon market grew by 37% in Q1 2009 compared to the previous quarter to reach 1,927 Mt. This was 128% higher than the first quarter in 2008. The carbon market has touch $121bn in 2009. Carbon market is forecasted to touch $408bn by 2012 and $2.1 trillion by 2020. India and China are the two major contributors in terms of carbon credit through Clean Development Mechanism. India currently hosts a total of 1,158 CDM projects, which take up 26.5% of the CDM project market share worldwide (Fenhann, 2007). However, the prospective revenue of certified emission reductions (CERs) in terms of kCERs generated by the CDM projects are expected to amount to 447,158 kCERs in 2012, averaging 15.5% of the kCERs in 2012 globally. In the Asian context, India currently hosts about 35% of the CDM projects, which will generate only 19% of the expected accumulated CERs in 2012. This paper discusses the contribution of Indian Carbon Market with reference to global carbon market scenario.

Keywords: Carbon Market, Market Classification, Carbon Credit

Suggested Citation

Singhal, Neeraj and Singhal, Neeraj and Gupta, Himani, Global Climate Change and Indian Carbon Market (July 29, 2012). Available at SSRN: https://ssrn.com/abstract=2119365 or http://dx.doi.org/10.2139/ssrn.2119365

Neeraj Singhal (Contact Author)

Management Development Institute Murshidabad ( email )

MDI Murshidabad, Kulori, P.O Uttar Ramna, Raghunat
Jangipur, 742235
India

Management Development Institute ( email )

MDI Murshidabad, Kulori, P.O Uttar Ramna, Raghunat
Jangipur, 742235
India

Himani Gupta

Indian Institute of Foreign Trade ( email )

New Delhi
QUTUB INSTITUTIONAL AREA
NEW DELHI, 110016
India

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