Carbon Credits- Latest buzz among industry circles

A logical step in the direction of reducing emissions of Green House Gases(GHG) in the environment by industries is trading of Carbon Credits(CCs). The policy follows the Kyoto Protocol treaty which is excepted internationally. A industry producing a tonne of carbon-di-oxide is given 1 carbon credit. Carbon quotas are assigned to industries by the government. For instance, a industry with a quota of 20000/year will have to purchase additional carbon credits if its emissions exceed 20000 tonnes of GHG. On the other hand if it saves credits by reducing its emissions it can sell the remaining to another industry. Planting trees will enrich the industry with CCs. As of now,CCs are openly traded in Chicago Climate Exchange and European Climate Exchange. The climate exchange works in the same way as a stock or commodity exchange. Policy-makers in India are planning to open an climate exchange in India as it is one of the top ten countries of the world contaminating the environment by its emissions and thus can prove to be a huge market for carbon credits, which in turn will produce revenues for the government.