With the impending ratification of the Kyoto Protocol by Russia, the treaty will come into effect, marking a landmark event in efforts at climate change. It is clear that countries like India will be affected by any global architecture for greenhouse gas (GHG) abatement that emerges. Despite near-term uncertainty about the size of the clean development mechanism market and the price of certified emissions reductions (CERs), it is very likely that India will be a major player. In the long run India along with other developing countries may take on some commitments especially where emissions trading may be an important component of the GHG abatement architecture. It is, however, important that we understand and address the problems in using a market-based approach to environmental management in India, particularly with respect to monitoring and enforcement.
