Global Carbon Markets: Highlights from the Latest Report
- Media Manager
- Apr 17, 2023
- 1 min read
Hinrich Foundation|The Visual Capitalist
Written By: Marcus Lu
Published: Published April 18, 2023
The Hinrich Foundation is proud to release their latest data-driven report: A Visual Primer on Global Carbon Markets.
This report was produced in partnership with Visual Capitalist, and provides insights into how carbon markets work, how they’re evolving, and where they’re being effectively implemented.
Why Carbon Markets?
Climate change is viewed as one of the greatest challenges facing the world today. In response, nearly every country in the world has set a goal to reach net zero by 2050.
To do this, countries will need to find ways to reduce their reliance on fossil fuels. One solution is carbon markets, which give businesses and individuals a place to buy and sell carbon credits. Carbon credits are tradeable permits that give their holder the right to emit a set amount of CO2.
When combined with government-imposed limits on pollution, carbon credits create an economic incentive for businesses to reduce their emissions.
For example, a company that pollutes beyond local limits has two options. It can either mitigate its emissions by investing in cleaner technologies, or purchase carbon credits to stay within compliance. In the mean time, the proceeds from these credits may fund other emissions-reducing projects, such as a wind or solar farm.
