Compliance Carbon Markets Final Report
Compliance Carbon Markets (CCMs), or Emissions Trading Systems (ETS) markets, fall under two broad categories. The first and most widely used type of compliance carbon market, also called “cap-and-trade”, is set by “cap-and-trade” regulations. In these markets, carbon emission allowances for domestic firms and sectors are issued by governmental organizations.
The report includes a total of twelve recommendations relating to primary market functioning, transparency and predictability of primary market decisions; market structures for primary markets, covering allowance allocation mechanisms, market stability mechanisms and primary market access; and secondary market functioning, with particular focus on market integrity, transparency and structure.
