Human is exploiting nature in every possible way to fulfil the needs of their day-to-day life, without thinking that excessive use of environmental resources puts adverse effect on environment in many ways. Whole world is facing issue of global warming which is caused by emission of Green House Gases (GHG). Emission of these gases have negative impact on climate cycle. India is a developing country having fifth largest economy in the world. Rapid development includes urbanization, investing a lot in infrastructure sector which includes construction and repairs and construction of dams, tunnels, roads, other infrastructure development project, urbanization etc. Construction work mainly consumes cement. Cement companies are major source of carbon emission because production of cement emits carbon in environment. Rajasthan is a second largest state in cement production (after Andhra Pradesh) with abundant limestone, which is main ingredient in cement production. The purpose of the study is to understand accounting and disclosures practices regarding carbon credits of Ambuja Cement, J.K. Cement & Shree Cement companies in Rajasthan for the past five years. Analysis of annual reports of the selected companies reveals that companies are disclosing maximum information regarding energy usage and cost, carbon emissions, carbon credits, new technology adopted to curtail carbon emission and other green initiatives taken to compensate carbon emission. Companies have environmental policies and sustainability reports. Companies are not trading their CERs. Lack of uniform and proper accounting procedure and format to record and disclose earnings from trading of carbon credits is a big hurdle in its accounting.

KEYWORDS: Kyoto Protocol, Carbon Emission, Green House Gases, Clean Development, Mechanism, Carbon Credit Accounting, Cement Companies.