This paper attempts to know the perception of the chartered accountants and the budding chartered accountants on the awareness and preparedness level of carbon credits and the carbon accounting system. Carbon credits are becoming more popular not just in India but globally as well. The idea of carbon credits emerged as a way to slow the planet's warming trend. Because of the irreparable harm to the climate brought on by companies and anthropogenic activities that release greenhouse gases, global temperatures are rising, endangering human life, and contributing to global warming. Therefore, when several nations came together at the third Conference of Parties to the United Nations Framework Convention on Climate Change, they came to an agreement that led to the development of the concept of carbon credits. Carbon credits help to safeguard the environment while also providing emerging and underdeveloped nations with a means of generating income. Should they falter to purchase the additional requirements, businesses can either purchase Carbon Credits from the commodities market or participate in Clean Development Mechanism initiatives, both of which are flexibility mechanisms granted under the Kyoto Protocol. Therefore, the purpose of this study is to determine whether or not chartered accountants are aware of how to record the carbon credit in the books of accounts. The government has to take more steps to educate chartered accountants on carbon credit accounting