The Paris Climate Agreement has driven countries scrambling to reduce and offset their greenhouse gas emissions. “Carbon markets” are created by capping the overall emission of a country, forcing the emitters to either reduce their carbon emissions or purchase “carbon credits”, such as from conservation projects, to compensate for their emissions.
Such mechanisms allow emitters to achieve their emission-reduction targets through developing “green”projects anywhere in the world, especially in developing countries. There are two types of carbon markets. One is voluntary markets that operate on a voluntary basis and functions outside of compliance markets.
In recent years, the voluntary carbon market has grown significantly. Forest carbon projects are arguably one of the most important nature-based climate solutions, with the demand for nature-based carbon credits potentially outpacing their supply