A carbon market is a system where companies, governments, or other entities can buy or sell carbon credits to offset their greenhouse gas emissions. This promotes emission reductions by assigning economic value to carbon savings.
FAQ
General Questions
Carbon credits are certificates representing the reduction or removal of one tonne of CO2 equivalent (tCO2e) from the atmosphere, which can be traded in voluntary or regulated carbon markets.
Based on verified results, result-based payments reward countries or organizations for achieving specific climate goals, such as emissions reduction or forest conservation.
Voluntary carbon markets allow entities to purchase credits voluntarily to offset emissions, while compliance markets are regulated by governments, requiring entities to meet mandatory emission reduction targets.
REDD+ (Reducing Emissions from Deforestation and Forest Degradation) is a framework that incentivizes developing countries to protect and restore forests by offering payments for verified emission reductions.
Carbon pricing assigns a cost to emitting CO2, encouraging businesses and governments to adopt cleaner technologies and reduce emissions to avoid higher costs.
High-integrity carbon credits are verified to meet strict environmental and social standards, ensuring that the projects they represent provide real, measurable, and lasting emission reductions.
Communities can benefit through improved livelihoods, investments in local infrastructure, and financial support for conservation activities tied to carbon projects.
Governments create regulations, set emission reduction targets, and provide a framework for trading to ensure that carbon markets function effectively and transparently.
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