Carbon Markets

Carbon markets are systems that enable the trading of carbon credits, which represent a reduction or removal of greenhouse gas emissions. They operate under cap-and-trade or baseline-and-credit mechanisms to incentivize emission reductions and fund climate projects. This concept is central to climate policy and corporate sustainability efforts.

Also known as: Carbon Trading, Emissions Trading, Cap-and-Trade, Carbon Credit Markets, GHG Markets

Why learn Carbon Markets?

Developers should learn about carbon markets when working on sustainability software, environmental tech (cleantech), or financial applications involving carbon credits. It's essential for roles in climate tech startups, ESG (Environmental, Social, and Governance) platforms, or regulatory compliance tools, as it underpins carbon accounting and offsetting systems.

Learning Resources

• docs: World Bank: Carbon Pricing Dashboard
• tutorial: UNFCCC: Introduction to Carbon Markets
• course: Coursera: Carbon Markets and Climate Policy
• video: YouTube: How Do Carbon Markets Work?
• book: Book: 'The Carbon Crunch' by Dieter Helm