8 Carbon market is the brain child of the Kyoto Protocol for controlling green house gas emissions. This market has become the fastest growing financial market in the world. This market is mainly operated by Clean Development Mechanism (CDM), which allows carbon credit earnings and carbon trading between countries and companies, establishing carbon credit exchange in the business world. As the first commitment period of the Kyoto Protocol in 2012 is completing nearly, it is important to take stock of global scenario of the carbon business and its achievement level. India signed and ratified the Kyoto Protocol in August 2002. Since India is exempted from framework of the treaty, it is expected to gain from the protocol in terms of transfer of technology and related foreign investments. India was an early player in the market and was doing well, but after the entry of China in 2005, it gradually outperformed India in the carbon market. This article focuses on the global scenario, India’s participation and performance in the carbon market. It also describes the market mechanism, highlights accounting treatment of carbon trading in India and international and finally cited number of case studies of Indian companies in carbon trade https://ijbed.org/details&cid=8 https://ijbed.org/cdn/article_file/i-1_c-8.pdf Volume 01 Issue 1 1 2013-03-01 2014-03-03 no Carbon credit Kyoto Protocol Clean Development Mechanism Certified Emission Reductions Carbon Exchange Indian scenario none 4840 3 0 Atish Prosad Mondal St. Xavier’s College (Autonomous) Sanchit Sachdev St. Xavier’s College (Autonomous)