Global Warming is the current topic in the political agenda across the globe. Every country seems to be spending lot of time, energy, and money to find solutions to one of the major international problems of climatic change. Carbon credits are issued to companies that reduce their greenhouse gas credits are then sold to companies who cannot fulfill the protocol norms, it helps the developing start with clean technologies; since these machines are expensive therefore funds are provided for countries in the form of carbon credits. 60- 70% of emission is through fuel combustion in industries such as cement, steel, textile. Some gases are released as by-products of industrial processes which affect the ozone layer. Carbon Trading is in its nascent stage in terms of development, which requires time and effort to be groomed as one of the matured markets. The estimated market value of the Carbon Trading was approximately $ 30 billion U.S. dollars in the year 2006. Carbon credit has been given the recognition of an intangible commodity and can be traded on the commodities market. Trading of car-bon credit happens in the form of Carbon Emission Reduction (CER). A CER is given by the CDM executive board projects in developing coun-tries to certify that they have reduced greenhouse gases emissions by one tons of carbon dioxide per year (20).