India is the third-largest carbon emitter in the world and is just now warming up to the idea of putting a price on carbon dioxide emissions. India is behind 40 countries and more than 20 cities, states and provinces that have already implemented carbon pricing schemes.

This covers about 13% of annual global greenhouse gas emissions, as per the World Bank. China, the world’s largest carbon emitter, embarked on the largest carbon emission trading system in July 2021.

The Gujarat government signed a Memorandum of Understanding with Energy Policy Institute at the University of Chicago and Abdul Latif Jameel Poverty Action Lab on May 23 to set up India’s first carbon market.

Carbon dioxide helps trap heat in the atmosphere and is also the primary greenhouse gas accounting for about 76% of total greenhouse gas emissions in the world.