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  • Institutional, Net Zero

Learn the differences between the regulated market and the voluntary carbon market

  • Posted in 10/07/2024

The carbon market is a fundamental instrument in actions against climate change, offering two main approaches: the regulated and the voluntary market.

See the main differences:

Regulated market: created and regulated by government policies, and encourages companies to limit their GHG emissions. In this approach, those who exceed the limits buy credits from those who issue less. This mandatory system promotes a significant reduction in emissions, generation of investments and new technologies.

Voluntary market: companies or individuals voluntarily offset their carbon emissions without legal requirements, standing out as sustainable leaders. Many Brazilian companies, including CEBDS members, already participate in this market.

Regulation is essential to ensure transparency, integrity and effectiveness in emissions reductions, preventing fraud and ensuring real and verifiable reductions.

Since 2016, CEBDS has contributed to the construction of a regulated market in Brazil in constant dialogue with the Executive and Legislative powers. In our most recent initiative, we led a positioning  signed by more than 50 large companies calling for urgency in regulating this market and simplifying the text of the bill.

Access NetZero Platform and see our solutions to support your decarbonization journey.

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