Carbon Credit Methodology and Framework – India and Global

Carbon Credit Methodology and Framework – India and Global A Structured Approach to Emission Accounting, Financial Modelling, and Carbon Market Research in India and Global MarketsPrepared as part of an Open Access Initiative in Climate Finance and Sustainable Development This paper presents a structured methodology and analytical framework for understanding, designing, and evaluating carbon credit mechanisms across India and global markets. Building on the conceptual foundations introduced in the book Carbon Credit: A Beginner’s Guide – Demystifying the Carbon Economy (ISBN: 978-93-343-6282-4), it advances the discussion from narrative understanding to a technical and replicable approach. The framework integrates emission accounting, financial modelling, and carbon market architecture into a coherent structure that bridges scientific principles, policy mechanisms, and economic decision-making within climate action. The framework integrates three core components: Emission Accounting – based on IPCC 2006 Guidelines and India’s CCTS framework, covering activity data, emission factors, MRV systems, sequestration calculations, and sector-specific methodologies for energy, agriculture, forestry, and waste. Financial Modelling – where carbon projects are evaluated using NPV, IRR, revenue forecasting, carbon pricing scenarios, cost curves, discounting timelines, and risk-adjusted returns. Market and Policy Frameworks – including voluntary and compliance carbon markets, Article 6 mechanisms, registry systems, credit issuance, verification, trading practices, and India’s evolving role in global climate finance. This paper serves students, practitioners, policymakers, and sustainability professionals by simplifying complex carbon market structures while ensuring technical accuracy. It emphasises India's position as an emerging climate economy while providing globally adaptable methodologies. Open Access StatementThis work is shared as part of a wider open-access initiative in climate finance and sustainable development. The paper may be cited, shared, and adapted under the Creative Commons Attribution (CC BY 4.0) license. Contact and Author InformationManoj Kumar Rawat Independent Climate and Rural Economy Advisor & Author SSRN Author ID: 8890132 ORCID: 0009-0005-5571-7820Email: [email protected] Author WebsiteAuthor Profile