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TYPES OF CARBON MARKETS
• There are broadly two types of carbon markets: 1. Compliance 2. Voluntary
• Compliance markets are created as a result of any national, regional and/or international policy or regulatory requirement.
• Voluntary carbon markets national and international refer to the issuance, buying and selling of carbon credits, on a voluntary basis.
• The current supply of voluntary carbon credits comes mostly from private entities that develop carbon projects, or governments that develop programs certified by carbon standards that generate emission reductions and/or removals.
• Demand comes from private individuals that want to compensate for their carbon footprints, corporations with corporate sustainability targets, and other actors aiming to trade credits at a higher price to make a profit.