Also known as the compliance market, it meets regulatory obligations under the Kyoto Protocol. Only countries subject to reduction targets can take part in this market, which includes two types of carbon assets: emission quotas and carbon credits.
Alongside the regulated market, there has been a requirement for voluntarily offsetting GHG emissions. All transactions between players constitute a voluntary market, which is not governed by any public institution. There are certification labels that guarantee the quality of carbon credits.
There are carbon standards, such as Gold Standard, VERRA or UNFCCC (CDM or JI).
They each have a PDD (Project Design Document), a real technical dashboard for the project. They are monitored according to procedures similar to the methodologies established by the United Nations Framework Convention on Climate Change. In addition, the CO2 reductions generated are verified by independent bodies, whether UN-accredited or not, depending on the amount of greenhouse gases avoided.
A national carbon certification tool, managed by the French Ministry of Ecological and Solidarity Transition, the Low Carbon Label enables project leaders to make the most of their climate-friendly activities with official recognition and financial compensation from economic players committed to social and environmental responsibility (CSR) or from voluntary carbon funds.
This mechanism, which has recently become operational, for projects in the forestry and agriculture sectors, is still not well known but is already being promoted by Global Climate Initiatives.
The carbon price has been included in order to limit negative impacts on the economy and society as a whole.
Each person emits GHGs from his or her activities, and these GHGs accumulate in the atmosphere and contribute to climate change.
We are all responsible for what we do and what we offload onto the earth, so putting a price on carbon is like paying for the use of the atmosphere.
Setting a carbon price provides an incentive for society and businesses to emit less while minimising their production costs. The carbon price must therefore be fair to ensure that it works properly.
Those involved have two possible courses of action, which can be concurrent:
Invest in “clean” technologies to reduce their consumption and thus reduce their emissions.
Pay an emissions allowance or carbon tax to continue to emit GHGs in the event that the carbon price is lower than the investment in clean technologies.
GCI offers a set of calculators which will enable a company to carry out its own calculations and reports that can be compared with third party data for each Scopes.
GCI’s digital platform offers everyone, from small businesses to large corporations, a set of tips and tools to reduce their carbon footprint.
As an international stakeholder, Global Climate Initiatives offers carbon offset projects selected and (co-)developed by our experts directly on site.