Benefits of Carbon Trading
• Sellers and intermediaries can hedge against price risk
• There is no counterparty risk as the Exchange guarantees the trade
• The price discovery on the Exchange platform ensures a fair price for both the buyer and the seller
• Players are brought to a single platform, thus eliminating the laborious process of identifying either buyers or sellers with enough credibility
By, switching to Clean Development Mechanism Projects, India has a lot to gain from Carbon Credits:
a) It will gain in terms of advanced technological improvements and related foreign investments.
b) It will contribute to the underlying theme of green house gas reduction by adopting alternative sources of energy
c) Indian companies can make profits by selling the CERs to the developed countries to meet their emission targets.
