Carbon Market

Emerged from the Kyoto Protocol (1997).
It is a broad and mandatory market, with government-imposed targets for the progressive reduction of carbon emissions.
Composed of mandatory reductions, where the price of CO₂ is higher.

Private financing occurs for climate-action projects.
Composed of voluntary reductions.
Encourages innovation in projects to reduce the costs of emerging climate technologies.
Certificates are issued by certifying entities, such as VERRA (VCS – Verified Carbon Standard).

Eligibility: Compliance with existing, independent, and internationally endorsed standards: IPCC, VERRA, GOLD STANDARD, CERCARBON, AMERICAN CARBON REGISTRY, CLIMATE ACTION RESERVE, PLAN VIVO.
Feasibility: Takes into account the viability of implementing the project and the volume of CO₂ to be generated.

Emissions: 55 billion tCO₂e/year.
Only 12 billion mitigated (99% — 11.9 billion in regulated markets).
Global voluntary market demand exceeded 1 billion in 2021.
The Paris Agreement (2015), COP21, established new targets for mitigating climate change.
Market growth: Demand expected to grow 15x by 2023 and up to 100x by 2050.
2021: USD 1 billion recorded / 2030: Expected to reach several billions (McKinsey).
European market: At least 55% reduction in emissions by 2030 — with traceable verification.

COP 26 (2021): Commitments to combat deforestation and reduce CH₄.
Country holds 40% of the world’s tropical forests (FAO).
Approximately 5 million credits in the voluntary market (VCM). Potential for 26 billion credits/year.
Market growth: 30% of the global population demands that companies compensate their emissions.
Brazil could supply 48.7% of global carbon-credit demand by 2030.