FAQs about Carbon Markets

5. What are voluntary carbon markets?

Voluntary carbon markets are those mechanisms where bonds are traded outside mandatory requirements. These are markets of companies that voluntarily require themselves to meet minimums with respect to GHG emissions. In case these cannot be achieved, they are not penalized as in regulated carbon markets. However, the reasoning for approval of voluntary projects is similar to those of the Clean Development Mechanism (CDM), which seek to ensure that the reductions are true, long-term and that they comply with all environmental standards without double counting.

The voluntary market is an alternative for actors whose needs or interests are different from the buyers of the regulated market. They are used, for example, in matters related to corporate image, social responsibility, etc.

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