Karbon Hero

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Karbon Hero - Types of Carbon Markets : Compliance vs Voluntary

Types of Carbon Markets : Compliance Vs Voluntary

What’s the difference between Carbon Credits from the Compliance Market and the Voluntary Market? Below shows an easy comparison of the differences and similarities of both.

Compliance Carbon Market :

Also known as “cap-and-trade”, “emission trading system (ETS)”.

Voluntary Carbon Market (VCM) :

A non-obligatory system that allows organizations, governments and individuals the opportunity to purchase carbon credits to offset their carbon emissions that can’t be avoided.

Moving forward, we need to rethink and shift the paradigm on how the voluntary carbon market ecosystem should be developed and not just mirror the compliance market. As both markets have very different dynamics in terms of motivation, processes, mechanics and goals.

Types of Carbon Markets