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In our world, carbon intensive activities have resulted into the Climate change posing severe and irreversible impact on the ecosystem. Now it is a challenge to the sustainability of the human civilization. The Government of India is working day and night to mitigate the effects of climate change and has made an impressive progress by strengthening the on-going initiatives and bringing in new energy reforms.

Our Honorable Prime Minister Shri Narendra Modi has described the climate change as the biggest challenge we humankind are facing and it is only natural to draw a corollary that our country India is ready to step up its efforts under climate discussions, reflecting a need for long-term strategy for development that is low on greenhouse gas emissions.

Globally, Carbon Market have been very successful in reducing green-house emissions by setting a cap on emissions and enabling their trading. This market place makes entities enabled to reduce emissions at lower cost to be paid to do so by higher cost emitters, which in result lower economic cost of reducing emissions.

But currently, India does not have voluntary carbon trading market to provide information of price accurately, to provide standard contract pledge and manage arrangement for long-term offtakes. In absence of domestic marketplace for this, in India there is chance of high reputational risk because of absence of due diligence resulting to high WACC, non-realization of Net-Zero AUM and no standard reporting. Considering this immediate requirement, the Government of India is taking necessary steps to create domestic carbon market in India.