The current and imminent adverse environment having social and economic impact of Green House Gas (GHG) emissions is a global phenomenal. The governments around the world are increasingly developing or are implementing policies regarding reduction of GHG emission to address the challenge. Because of current and expected regulatory constraints, firms and individuals around the world are taking steps to reduce their GHGs emissions. The Indian carbon market so far is largely driven by CDM opportunity under Kyoto Protocol. The majority of projects that have sold carbon credits include renewable energy (such as wind power, biomass co-generation and hydropower), energy efficiency measures in several sectors as well as the reduction of industrial gases that contribute to climate change. Of the total number of carbon contracts signed in the world so far, India has emerged as a significant player in the carbon market with approximately 12% market share. India can consider the creation of a Carbon Market Fund aimed at accelerating the capacity to develop carbon finance opportunities and for strengthening carbon Markets . The government can provide the initial corpus and subsequently a cess can be levied on the selling of carbon certificates to mobilise resources for the fund. This was one of the key suggestions made in the report prepared by Confederation of Indian Industry (CII) with funded and supported by the British High Commission. Also, the report said there is a pressing need for setting up an organized carbon exchange in the country. To begin with, there could be an organised e-auctioning platform that can be created. Though the auctioning platform would allow only one side bidding, many intermediaries can utilize this to buy and bank VERs or CERs, if he prices are low and sell it at higher prices in international market at opportune time. This will push the price up at the e-auctioning platform and project developers (sellers) can be assured of getting reasonable price. Despite its huge potential, the Indian carbon market is currently small (relative to potential). It is important that the market be consolidated in every respect for enabling Indian industry to tap the opportunities. India is likely to capture 10% of the global carbon market during the first commitment period of 2008-2012. However, data from World Bank study, indicating a range of 20-30% are more realistic since they are based on project data (12% market share). Thus, India's volume of CER exports in 2012 may range between 7.5 MTCO2eq (methane emission) and 79 MTCO2eq, bringing in revenue in the range of $30-300 million per year.