Carbon credits are a key component of national and international emissions trading schemes that have been implemented to mitigate global warming. They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. In India carbon credit decision are taken by Kyoto protocol under united national frame work of climate change (UNFCC).Any fluctuations on population, pollution, iip, etc. will impact on carbon credits. During this analysis I have taken determinants which effects directly or indirectly on stock market returns.