Pathways to Carbon Neutrality through Carbon Credits and Carbon Markets: Indian and Global Frameworks

Carbon neutrality is an important pathway for reducing greenhouse gas emissions and supporting sustainable development at both national and international levels. The review shows that carbon credits, carbon markets and emission trading systems can play a valuable role in promoting cost-effective climate action when supported by strong policies, proper accounting systems, transparency and environmental integrity. From the Indian perspective, existing mechanisms such as PAT, REC and CDM provide a strong foundation for the development of the Indian carbon market, which can contribute significantly to India’s NDC targets and long-term net-zero goals. From the international perspective, carbon markets and emission trading systems such as the EU-ETS, China ETS and Korea ETS show that well-designed market mechanisms can support effective emission reduction and global climate action. Overall, with growing policy support, renewable energy expansion, improved monitoring systems and active stakeholder participation, carbon neutrality can become an achievable and effective strategy for building a cleaner, low-carbon and sustainable future.

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