Emissions Markets
There are 3 main types of emissions markets currently being used:
Regulatory Markets have emissions targets set by the governing body and issues allowances to emitters. Examples include the Kyoto Protocol, the EU Emissions Trading Scheme, the New South Wales Greenhouse Gas Abatement Scheme (GGAS), the Regional Greenhouse Gas Initiative (RGGI), and California’s AB32-Global Warming Solutions Act.
Voluntary Markets exist outside of any regulatory mandate and are typically used by corporations and organizations in the U.S. and Europe who want to brand themselves or their products as “green”, or in preparation for an eventual regulatory market. Examples include the Chicago Climate Exchange.
Consumer Markets allow individuals to offset their carbon usage and fund projects in their area of interest. Examples include AgCert’s Driving Green.