Leveraging blockchain for carbon credit trading: a sustainable future (part 1)

Two primary categories of carbon markets hold a crucial position in tackling the worldwide issue of decreasing greenhouse gas emissions - mandated compliance markets and voluntary markets. These markets function with varying approaches and fulfil distinct roles in the battle against climate change.

Regulatory compliance market

The regulatory compliance market primarily caters to organizations and governmental bodies with a legal obligation to account for their greenhouse gas (GHG) emissions. These obligations stem from compulsory carbon reduction frameworks at national, regional or international levels. These frameworks are essential in ensuring that entities meet their emission reduction targets and fulfil their environmental responsibilities. In this market, the compliance regulations are precise and rigorous with the regulatory framework placing a strong emphasis on the legal aspects of reducing carbon emissions and mandating specific actions to achieve emission targets. Additionally…