Today the biggest threat that our planet faces is global warming. As the revolution in the industrial and life cycle, the CO2 level in the earth atmosphere rises. To delay the time of global warming, global economy has taken one of the initiative called Carbon Credit. On Wednesday 16 February 2005, some 8 years after the world’s nations came together in Kyoto in Japan in 1997 to discuss global warming; the Kyoto protocol finally came into force. It has covered six greenhouse gases. In line with the above, the carbon credit market overview and future potential of the market covered by literature analysis. The research addresses technologies adopted by organizations and baselines, factors and risk level associated with the different registered Clean Development Mechanism (CDM) projects in India. It has also examine the barriers faced by selected organizations and the impact of CDM projects for running the carbon credit project. Further the study evaluated the financial analysis of CDM Projects in India. The CDM projects needs to be eco-friendly create employability as well as feasibility of the CDM projects plays an important role among all the aspects. Global market condition and monitoring cost of the CDM projects were highly affecting CDM projects in energy organizations. Out of all the risk associated with project, capital cost over-run risk, operational risk and supply risk were found to be influencing the CDM projects. The organizations which had registered CDM projects do not necessary to go for carbon trading because they had contract with the foreign party. Data analysis also revealed that organizations which had gone for carbon trading mostly prefer forward contract because of carbon pricing fluctuations. The result of research shows that large scale CDM projects do not differ with reference to organization and project profile, except financial aspects, administration, operation and time span of the project. The research contributes to the field by demonstrating different parameters of CDM project in India. Finally, the research identifies and recommends areas for future studies.
