Tamil Nadu aims to leverage the carbon market to finance climate actions such as the Wetland Mission and expanding mangrove cover. The state government intends to create new mangrove areas, restore degraded patches, and provide green jobs to local communities while registering projects for carbon credits. Blue carbon credits, based on the state’s extensive coastline, offer another avenue for funding. Additionally, partnerships for agroforestry expansion and forest restoration are being explored. Tamil Nadu has established a first-of-its-kind Green Climate Fund and allocated an additional fund for Green Shoe Option. The carbon market serves as an alternative funding source for climate initiatives, helping Tamil Nadu advance its greening and low-carbon aspirations.