| Abstract: |
Climate change poses an existential threat to sustainable development, necessitating urgent legal and policy interventions. Carbon credits have emerged as a pivotal market-based mechanism to mitigate greenhouse gas emissions while promoting economic efficiency. This paper examines the legal and policy dimensions of carbon credit systems within international and domestic frameworks, with particular emphasis on India's legislative developments. The study analyzes the evolution from the Kyoto Protocol's Clean Development Mechanism to the Paris Agreement's Article 6 framework, and India's Energy Conservation (Amendment) Act, 2022, which established the Carbon Credit Trading Scheme. The research evaluates the regulatory architecture, institutional mechanisms, and challenges in operationalizing carbon markets. Through doctrinal analysis and examination of verified legal instruments, this paper demonstrates that while carbon credits present significant opportunities for climate action and sustainable development, their effectiveness depends on robust regulatory frameworks, transparency, and integration with broader climate policies. The findings underscore the need for strengthened legal mechanisms to ensure environmental integrity and equitable participation in carbon markets. |
