LEGAL FRAMEWORK- CARBON CREDITS
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Abstract
The popular term today in India finds its genesis, dating back to 1989 in America, where an American company called AES Corp financed an agri forest in Guatemala to offset its emissions of coal fired power plant in Connecticut.
The term was given an international recognition with the Kyoto protocol of 1997 whereby developed countries found carbon offsets as a mechanism to reduce carbon footprint and emissions and carbon credits as a motivator. Resultantly, Carbon as a tradeable commodity was recognised in 1997, 2005 and again in 2015 in the Paris agreement.
India recognised carbon as a “good” as late as 2008 and declared trading of carbon credits on multi commodity exchange.
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