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The carbon trading market allows polluting companies to pay others to cut carbon emissions on their behalf so as to meet the reduction targets set by Kyoto Protocol. A high volume of trading in the carbon derivatives market helps price discovery and liquidity, and in this way helps to set a clear price signal which helps businesses to plan investments.
India has a unique opportunity to become the leader in Carbon trading market. By 2012 emission reduction projects from India are expected to yield around 400 million CERs but it has to guard against the prowess of China to race ahead and capture the market...
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