Carbon markets, often used to describe the trade of carbon credits (mostly trade of voluntary carbon credits), is one of the least understood mechanisms and a polarising topic among climate activists. But Carbon markets are much more than just trade of carbon credit that you might have heard from someone talking about making money by planting trees or selling credits from a biogas plants or from an ‘improved cookstove’ projects. Carbon market is one of the most effective way of implementing result based financing or pricing the carbon (in other words: making polluters pay).
While the debate on carbon market and its different implementation frameworks is still on, the European carbon market and carbon pricing mechanism does provide evidence that mechanism works if implemented properly.
Read more here.. https://www.economist.com/europe/2024/04/25/carbon-emissions-are-dropping-fast-in-europe
