Why in News? 

The Bureau of Energy Efficiency (BEE) hosted the 1st International Conference on Carbon Markets – PRAKRITI 2025 (Promoting Resilience, Awareness, Knowledge, and Resources for Integrating Transformational Initiatives). 

Key Features 

• India’s Carbon Market: Influenced by global policies like the EU’s Carbon Border Adjustment Mechanism (CBAM), impacting steel and high-emission industries, requiring urgent domestic reforms. 
• EU’s CBAM: Ensures fair carbon pricing on imports, aligning them with EU-produced goods and encouraging cleaner industrial production. 
• Carbon Markets: Under Article 6 of the Paris Agreement, they allow entities to trade carbon credits to offset emissions by funding greenhouse gas reduction projects. 
• India’s Carbon Market 
  • 2nd globally in CDM (Clean Development Mechanism) project registrations. 
  • PAT Scheme (Perform, Achieve, and Trade) saved 106 million tonnes of CO₂ since 2015. 
  • Regulated by BEE.