Carbon Markets

Carbon credit is an offset mechanism that enables an equivalent reduction in carbon dioxide from the atmosphere by preventing or reducing the same amount of carbon dioxide from entering the atmosphere elsewhere on earth through green projects/initiatives.

Globally, compliance carbon markets have been developed by nations to cut their emission or bring it under a defined cap, with this limit being set up global accord like Kyoto Protocol or Paris Climate Change accord. European Union Emission Trading System (EU ETS), Western Climate Initiative (WCI) & Regional Greenhouse Gas Initiative (RGGI) – both operating in North America – are some of the major examples of mandatory carbon markets.

On the other hand, voluntary markets are predominantly prevalent in developing countries wherein the nation takes measures to lower their carbon footprint as part of their own initiatives (CSR/ improving reputation etc). The credits that are part of such voluntary market is termed as Voluntary Emission Reduction (VER) credit.

We at Green Climate Foundation are advocating for the transition of countries like India and other developing nations into an organized ecosystem for the generation and supply of carbon credits given that this will encourage the development of more green projects that will help offset carbon emissions from the atmosphere. More green projects would mean more carbon credits which would mean increased mitigation of carbon dioxide from entering the atmosphere. This will help us get to a net-zero future sooner!