• Anupriya Jaiswal,
• Richa Singh
• Sherya Yadav
• Aman Kumar
• Vijay Pratap Singh

This research paper examines the role of carbon markets in sustainable finance, analyzing their impact on outflow reductions, green speculations, and monetary advertising integration. The study explores cap-and-trade frameworks, intentional carbon markets, and monetary disobedient connected to carbon exchanging. Challenges such as cost instability, administrative crevices, and straight or wardress concerns are discussed. The discoveries highlight how carbon markets contribute to maintainable money related systems and propose arrangement suggestions for improving show case productivity. It too addresses the basic issue of feasible improvement within the power and warm division in India through the implementation of carbon credit and carbon taxation mechanisms. India, as one of the world's fastest-growing economies, faces the double challenge of assembly its expanding vitality requests where as moreover combating climate alter and decreasing carbon outflows. The electricity and heat sector, being one of the major supporters to carbon outflows, requires inventive approaches and methodologies to advance supportability and diminish its natural affect. It moreover distinguish the challenges and boundaries related with the usage of carbon credit and taxation in India, including the need for robust monitoring, announcing, and verification mechanisms, as well as the significance of guaranteeing value and moderating potential financial impacts. It emphasizes the centrality of carbon credit and carbon tax assessment as basic devices for advancing economic advancement in India's power and warm division. It advocates for a comprehensive approach framework that coordinates these mechanisms into the country's vitality methodology, where as moreover considering the interesting socio-economic and natural setting of India.

Keywords: sustainable finance, cap-and-trade frameworks, monetary disobedient, socio-economic, carbon taxation mechanisms

"The Role of Carbon Markets in Sustainable Finance", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 3, page no.g741-g744, March-2025, Available :http://www.jetir.org/papers/JETIR2503690.pdf

"The Role of Carbon Markets in Sustainable Finance", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 3, page no. ppg741-g744, March-2025, Available at : http://www.jetir.org/papers/JETIR2503690.pdf