Carbon Market
From Open Risk Manual
Definition
A Carbon Market is a trading scheme that creates financial incentives for activities that reduce or remove greenhouse gas emissions. [1]
In these schemes, emissions are quantified into carbon credits that can be bought and sold. One tradable carbon credit equals one tonne of carbon dioxide, or the equivalent amount of a different greenhouse gas reduced, sequestered or avoided.
For carbon markets to be successful, countries must work together to secure robust carbon accounting, ensure transparency for carbon market transactions, implement safeguards against human rights abuses and other adverse societal impacts, and combat Greenwashing and the misrepresentation of carbon-neutral products and services.
