What are Voluntary Carbon Markets?

    “Net zero” emissions by 2050 is a goal that needs to be achieved when it comes to fighting climate change and which requires change by the entire economy. EEX Group is committed to contribute to that change. 

    To reach the “net-zero goal”, companies do not only need to decarbonize but also compensate and increasingly neutralize their emissions. Robust, trustful, and secure voluntary carbon markets are therefore needed to allow offsetting emissions by purchasing carbon credits.

    Voluntary carbon markets allow carbon emitters to offset their emissions by purchasing carbon credits emitted by projects targeted at removing or reducing greenhouse gas from the atmosphere.

    Carbon markets can be broadly divided into two segments:

    • Compliance markets: driven by binding emission reduction targets (e.g. ETS) or other types of regulation (e.g. tax)
    • Voluntary markets: corporates or individuals who wish to offset their emissions (“voluntary offsetting”)

    Historically, voluntary demand has led to a proliferation of privately governed certification standards. Those standard organizations issue carbon credits for certain project activities (project-based). As a result, different types of carbon credits with different qualities exist. Carbon credits can be broadly grouped into two main categories: reduction credits and removal credits

    Tobias Paulun explains the Voluntary Carbon Markets

     

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