Abstract
India is a major contributor to the global warming of the world, but there persists a prevalent lack of understanding of carbon trading (carbon credit derivative) as a commodity tradable on the stock exchange. The study brings into light the predominant drivers that can lead to the sustainable enhancement of efficacy and efficiency of carbon credit trading in India. The key drivers responsible for the sustainable implementation of the carbon credit derivative trading in India are identified and critically examined. The Analytic Hierarchy Process and Best–Worst Method have been used to rank the factors and sub-factors based on the priority (or weights) provided by the industry experts. The results indicate that the risk factors in the carbon credit derivative market are extremely crucial for enhancing sustainable trading of carbon credit derivatives closely followed by the reward and opportunity factors. The study is the first study which analyses the factors that can lead to the sustainable implementation of carbon credit trading in India. The study also contributes to the organizational strategy that carbon securitization would contribute significantly towards their financial as well as ecological sustainability.
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Source: OECD (2019), CO2 emissions embodied in international trade
Source: OECD (2019), CO2 emissions embodied in international trade
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Notes
The Inter-governmental Panel on climate change defines the production-based emissions as the emissions taking place within the national territory or overseas depending upon the jurisdiction of the country. On the contrary, the consumption-based emission is the reverse of the production-based emission as it includes the exports barring out the imports.
Estimated expenditure of Rs 650,000 million has been converted to USD 9.805 billion based on the exchange rate of USD/INR on December 31, 2015 (1 USD = Rs 66.29).
Annex B of the Article 3(1) has the inscription about the reduction commitments of the parties included in Annex I.
Annex I parties are industrialized nations with economies in transition and are legally required to reduce their greenhouse gas emissions once they have ratified the agreement.
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Bansal, S., Mukhopadhyay, M. & Maurya, S. Strategic drivers for sustainable implementation of carbon trading in India. Environ Dev Sustain 25, 4411–4435 (2023). https://doi.org/10.1007/s10668-022-02205-w
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DOI: https://doi.org/10.1007/s10668-022-02205-w