A balancing act: the use of carbon credits in compliance markets
Here are some key takeaways
Carbon credits are increasingly used by governments within compliance mechanisms to drive corporate emissions reductions and help to meet NDC targets.
The potential demand for carbon credits from compliance markets could represent almost double the amount of the annual demand in the VCM.
Article 6 could catalyse the use of carbon credits within regulated schemes by allowing countries to claim emissions reductions as part of their NDCs.
What are the drivers of carbon credit use in compliance markets?
How are carbon credits used in climate policy?
How do carbon credits support government objectives?
How is the growth of compliance credits affecting the voluntary carbon market?
Considerations for policymakers