Environmental Law And Carbon Credit Mechanisms: Pathways To Climate-Smart Sustainability

Abstract

Climate change represents one of humanity's most pressing challenges, necessitating comprehensive legal frameworks and innovative market mechanisms. This research paper examines the evolution and effectiveness of environmental law in conjunction with carbon credit mechanisms as instruments for achieving climate-smart sustainability. The tudy analyzes India's Carbon Credit Trading Scheme, 20231 established under the Energy Conservation (Amendment) Act, 20222, alongside the international legal framework provided by the Paris Agreement3 and its Article 6 provisions4 for cooperative carbon market approaches. Through doctrinal analysis of statutory provisions, regulatory frameworks, and comparative examination of international carbon trading systems, this paper demonstrates how legal mechanisms transform environmental protection from regulatory compliance into economically viable sustainability pathways. The research emphasizes the critical role of robust legal infrastructure in ensuring environmental integrity, preventing double counting, and mobilizing climate finance for achieving India's Nationally Determined Contributions and global net-zero targets.