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Part 1 - Introduction to Carbon Markets

--> Discover the contrasting Voluntary Carbon Market (VCM) and Compliance Carbon Market (CCM).
--> VCM focuses on carbon credits, representing environmental goodwill through emissions offsetting projects.
--> CCM, on the other hand, prices emissions directly, with governments setting caps and issuing allowances.

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Part 2 - Understanding the Compliance Carbon Market (CCM)

--> CCM operates through political and economic mechanisms, aiming to price greenhouse gas emissions.
--> Governments establish emission targets, translating them into remaining carbon budgets.
--> Carbon-intensive actors must comply with emissions limits enforced through permits or allowances.
--> These permits are traded in primary and secondary markets, influenced by supply and demand dynamics.
--> The CCM incentivizes investment in emission reduction solutions, driving progress towards sustainability.

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Part 3 - Exploring the European Emission Trading System (EU ETS)

--> Launched in 2005, EU ETS covers over 40% of the EU's emissions, setting targets and issuing allowances.
--> It has reduced emissions by over 40% but faces challenges aligning with global warming targets.
--> EU Allowances (EUAs) currently trade between 50€ and 60€, serving as a model for global emissions trading schemes.

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Part 4 - Insights into the Voluntary Carbon Market (VCM)

--> VCM allows individuals and companies to offset emissions by purchasing carbon credits.
--> Each credit represents 1 ton of CO2-eq removed or avoided, with challenges like opacity and low prices hindering its growth
.--> Article 6 of the Paris Agreement enables countries to trade Internationally Transferred Mitigation Outcomes (ITMOs), independently from voluntary carbon credits.