Carbon Market

A carbon market is a trading system where carbon credits or emission allowances are bought and sold. Compliance markets (EU ETS, UK ETS, India CCTS, NZ ETS) are government-regulated with mandatory participation for covered entities. Voluntary markets allow companies and individuals to offset emissions through project-based credits. Carbon markets create economic incentives for emission reductions by pricing carbon. Global carbon markets reached $949B in traded value in 2023.