Complexity of carbon markets

  • 31/03/2008

  • Economic Times

Not so long ago, an Indian company selling carbon credits had a cache of glamour that business-as-usual competitors could only envy. Not any more. By the look of things, if you are planning to enter the carbon credit market, be prepared for 60 months of hair-raising suspense. The nub of the matter is "additionality'. To avoid giving credits to projects that would have happened anyway ("freeriders'), rules have been specified to ensure the project reduces emissions more than would have occurred had it not been there. That is called