The increasing concentration of greenhouse gases (GHG) in atmosphere and its impact on global environment are driving the countries around the globe to reduce their share of GHG emission in atmosphere. The GHG reducing mechanisms are based on the Kyoto Protocol's system for accounting of carbon targets and are traded under three Kyoto mechanisms, namely Joint Implementation (JI), Clean Development Mechanism (CDM) and Emissions Trading (ET). Under the Clean Development Mechanism, developing countries can earn certified emission reduction credits by implementing carbon emission-reduction projects. In India, most of the carbon projects have been implemented in the energy sector and very few projects are concerned with rural development. And also, the carbon projects in India are not compliant with the policy of IPCC, 2007 which says that sustainable development must have environmental, economic and social dimensions. The paper has explored opportunities and interventions in the rural sector to harness the benefits of carbon projects in India. Three important areas of rural economy, viz. agriculture, forestry and energy management have been discussed where carbon emission can be managed to earn carbon credits. The paper has also outlined the limitations of carbon trading and has suggested a road map for making rural sector compliance with carbon market for carbon trading.
Carbon markets, carbon trading, rural sector, agriculture, energy management, forestry
