Emissions Trading and Carbon Credit Accounting For Sustainable Energy Development with Focus on India

Abstract

Global climate change is inextricably linked with the enhanced build-up of greenhouse gases. Emissions-trading in the form of carbon credits or CERs is opening up a new vista of trade opportunities with prospect for gradual reduction of emissions, particularly by the developed nations under Annexure-I categories. Various national and international programmes undertaken by the government and voluntarily by the non-governmental agencies have positively impacted on progressive reduction of emissions in many parts of the world. The paper highlights the emerging issues linked to the modalities of emission-trading, together with scope for developing sound accounting procedures for trading carbon credits. The paper discusses the opportunities for developing a sound marketing system of carbon credits with built-in efficiency in transactions, accountability and transparency in reporting systems with focus on India. Paper also underlines the need to comply with the Global Accounting Standards, Tax Planning, access to Multi-commodity Exchange Market, certification, verification and enforcement procedures for proper execution of emission-trading initiatives, aimed at achieving carbon neutrality. The aspects of Carbon management with focus on carbon neutrality, sustainable energy development and implicit energy security, are also highlighted.

Keywords

Emissions Trading Carbon Management Global Carbon Accounting Carbon Offsetting & Foot-printing Carbon Neutrality Carbon Literacy

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