Abstract
Carbon trading is an important measure to reduce overall carbon emissions in modern supply chains. However, the wider adoption of carbon trading faces various barriers, especially when complex global supply chain operations are involved. In this paper, based on the extant literature and the industry experts’ opinion from Indian steel manufacturing industry, key barriers are identified and analysed through a multimethod approach. The Fuzzy-Analytic Hierarchy Process (Fuzzy-AHP) is used to prioritize the barriers. Graph theory matrix approach (GTMA) is then applied to compute comprehensive index for evaluating barrier intensity of supply chain firms. Results show that economic, political and legal barriers have more significant impact on carbon trading adoption than other barriers. Moreover, Indian steel manufacturing industry has strong propensity to tackle barriers of carbon trading adoption. Insights from this research offer important implications for practitioners and policy makers to develop better carbon trading strategies and policies.