Carbon Credit Management and Strategies to Combat GHGs Emission: An Overview of the Carbon Market

Abstract

The climate of the earth is changing at a rapid rate and every one of us plays a key role in the form of the products we purchase, the electricity we use, the way manufacturing units produce toxic waste, releases carbon dioxide and other harmful GHGs which leads to global warming. It alsohas a serious impact on our environment and the economy that affects the future and the present generation. To combat the problem of an increase in the earth's climate UNFCCC embraces the Kyoto Protocol, which is a universal agreement between the countries, and commits them by setting up universally mandatory emission reduction targets. The purpose of this paper is to analyze the carbon market, its strategies, pricing, and trading mechanism especially in context to the EU ETS mechanism trading mechanism. It also helps us to understand how the problem of climate change can be resolved and allows nations to create good atmospheric conditions and utilize funds on renewable sources of energy to create win-win situation. This paper also focuses on carbon price influence in determining the business strategy.