MITIGATION of the effects of climate change is a growing concern around the globe. Due to this, the call to redirect financing and investments toward green and socially responsible projects has become louder. One of the ways countries can finance climate change mitigation goals that are otherwise not funded by public finance is through voluntary carbon markets (VCMs).
VCM is where private individuals and organizations issue, buy and sell carbon credits outside of regulated or mandatory carbon pricing instruments. Each carbon credit represents 1 ton of greenhouse gas (GHG) emissions that was not emitted into the atmosphere. One credit is issued for each metric ton of GHG emissions avoided, reduced or removed.
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