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.