Tag: compliance market

  • Carbon Allowance

    Carbon Allowance Carbon allowances represent official permissions granted by a governmental agency, allowing a company to release one ton of CO2 or its equivalent (CO2e). Governments establish emission targets in advance and progressively reduce them over time, aiming to achieve net-zero targets by 2050. These allowances are integral to compliance markets, where they can be…

  • Carbon allowances, credits and offsets

    Carbon allowances, credits and offsets Carbon allowances and carbon credits/offsets form part of carbon markets that attempt to reduce greenhouse gas emissions by putting a price on them, effectively turning CO2 into a commodity. While the terms are often used interchangeably, they trade on two distinct markets: carbon allowances – an official, or compliance market;…