Carbon Market
Carbon & ClimateA 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.
Related Terms
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Carbon Footprint
A carbon footprint is the total amount of greenhouse gases (GHGs) generated…
Carbon Accounting
Carbon accounting is the systematic process of measuring, recording, and reporting an…
Net Zero
Net zero means achieving a balance between greenhouse gas emissions produced and…
Decarbonisation
Decarbonisation is the process of reducing carbon dioxide and other greenhouse gas…
Scope 1 Emissions
Scope 1 emissions are direct greenhouse gas emissions from sources owned or…
Scope 2 Emissions
Scope 2 emissions are indirect greenhouse gas emissions from purchased electricity, steam,…
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