Volume No. 3 Issue No.: 4 Page No.: 1031-1039 April-June 2009




Ambiecka Pandit* and Lzafeer Ahmad

National Law University, Jodhpur (INDIA)


Received on : February 12, 2009




Global Warming has become an international concern and is a threat to sustained development and peaceful existence of all countries around the globe. The major factor contributing to global warming being carbon emission, the international community as a whole thus decided to take steps towards establishing an ultimate objective of reducing carbon emissions to a level which would no longer interfere in harmful ways with the environment. The Climate convention and Kyoto Protocol were signed in furtherance of this objective. Kyoto Protocol signed in 1997 aims at reducing emission by 5.2% of their 1990 levels by 2012.
Carbon trading though prima facie a perfect trading mechanism and the result of free market and trade liberalization in a globalized world has three underlying unexplored issues. The objective of carbon trading is to progress sustainably.
1. The nations that are buying carbon credits are causing further pollution within its nation thereby stunting national environmental development. .
2. The trading scheme lacks foresight. The goal is to reduce carbon emission by 2012. A country selling credits is given monetary consideration which cannot be used to diversify industry because it has less pollution making leverage. A country buying rights has no incentive to improve technology to reduce pollution because it can diversify industry with its pollution making leverage which will always keep it in a position to buy. This creates a capitalistic market wherein the developed always remain developed and the developing always developing.
3. Lastly, enforcement is of grave concern. Buyers want to obtain cheap pollution rights; sellers want to make money selling them at large. It doesn


Keywords : Carbon Credit, Carbon dioxide, Environmental Development, Capitalist Monopoly, Kyoto protocol.