4. What are regulated carbon markets?

Regulated carbon markets are mechanisms for buying and selling carbon credits or Certified Emission Reductions (CERs), through which companies can sell or purchase greenhouse gas reductions, which are certified and accounted for by the Intergovernmental Panel on Climate Change (IPCC).

Under this scheme, companies are required to demonstrate that their GHG emissions correspond to the quotas allowed by their bonds. The regulated emissions market is based on transactions that involve projects whose emissions can be quantified, registered and verified under the IPCC rules. It includes activities of Joint Implementation (IC) and Clean Development Mechanism (CDM) projects, both agreements included in the Kyoto Protocol.