Effective Carbon Management for Carbon Market Compliance by the Rural Sector in India

Abstract

The increasing concentration of green house gases (GHG) in atmosphere and its dramatic impact on global environment drive countries around the globe to reduce their share of global GHG emission into the atmosphere. The GHG reducing mechanisms are traded under three Kyoto mechanisms namely; joint implementation (JI), clean development mechanism (CDM) and emissions trading (ET). Under CDM, developing countries can invest in carbon emissionreduction technologies and earn certified emission reduction credits which can be then traded in the carbon market. In India, most of the carbon projects are implemented in the energy sector. Very few projects are concerned with rural development. Also, carbon projects in India are not compliant with the policy of IPCC 2007 which says that sustainable development must have environmental, economic and social dimensions. Most of the projects are implemented by the private sector or companies and rarely rural livelihood aspect is considered. The study explores opportunities and intervention in the rural sector to harness the benefits of carbon projects in India. Three important areas of rural economy, viz. agriculture, forestry and energy management were discussed in detail where carbon emission can be managed to earn carbon credits. The article discusses the limitations of carbon trading and concludes by suggesting a road map for strengthening and making the rural sector compliant with carbon market for carbon trading.

A systematic review of emerging environmental markets: Potential pathways to creating shared value for communities

“…Additionally, they can trade in the carbon offset/credits market and similarly in the water market for water credits. These climate initiatives in the industry can create additional income for the primary producers [ 27 , 33 , 47 , 48 ].…”

“…In the agriculture sector, the environmental market is gaining importance with the global climate change outlook and industries progressing towards net zero commitments by 2050 [ 55 ] and climate-related financial disclosures [ 56 ]. In this regard, there is huge potential for investments in newly emerging environmental markets, for example, the carbon market through carbon/greenhouse gas emission reduction and carbon offset/credit markets by soil carbon sequestration and carbon neutral products [ 42 , 48 ]. Another investment opportunity lies in the environmental credit market, where initiatives are undertaken to improve water and air, promote fertile soil, and reduce pollution.…”

Bibliometric analysis of scientific production in accounting related to carbon credits

“…Um projeto de MDL envolve investir em projetos de energia renovável ou em plantio de florestas, o que contribui para compensar as emissões de GEE. As florestas tropicais também são consideradas como recursos naturais potenciais para reduzir as emissões de gases com efeito de estufa, especialmente o CO 2 , isso visa incentivar os países em desenvolvimento a reduzir as emissões e investir em tecnologias de produção de baixa emissão de carbono para o desenvolvimento sustentável, todas essas atividades são conhecidas como comércio de carbono (EKKA; AFTABUDDIN; PANDIT, 2016).…”