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Introduction:

The carbon market allows the trading of both carbon credits and carbon offsets (environmental offsets). This both helps to deal with the environmental crisis and creates business opportunities.

Although the international carbon trading market has existed since the 1997 Kyoto Protocols, interest in this market is relatively new due to the emergence of new regional markets that have spurred a new wave of investment beneficial to both large companies that want to reduce their carbon footprint. and for project owners who can benefit from the credits.

International carbon emission targets were determined by both the 1997 Kyoto Protocol and the 2015 Paris Agreement – ​​the latter giving rise to national emission targets and also regulations to support them.

Due to these regulations, companies need to reduce or offset their carbon emission – and, as a result, one of the possible solutions involves the carbon market.

What this market does is transform CO2 emissions into a commodity, attributing a price to them. As such, these emissions become carbon credits that can be bought and sold.

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Carbon credits