Carbon platform

The emissions trading system (ETS) is one of the effective instruments of carbon regulation, built on the “polluter pays” principle. The systematic development of ETS is aimed at generating income to finance green projects, as well as stimulating the reduction of greenhouse gas emissions.

ETS, Emission Trading System

The emissions trading system (ETS) is one of the effective instruments of carbon regulation, built on the “polluter pays” principle. The systematic development of ETS is aimed at generating income to finance green projects, as well as stimulating the reduction of greenhouse gas emissions.

The AIFC has prepared a package of amendments to the legislation, including proposals for transforming the carbon unit into a new trading instrument; introduction of paid distribution of carbon quotas, including from the reserve; the creation of a Carbon Fund, which will also serve as a market maker and market stability fund; as well as expanding the ETS participants to financial institutions and financial brokers.

VCM, Voluntary carbon market

Voluntary Carbon Market (VCM) refers to the issuance, selling ang buying of carbon credit on a voluntary basis, which can take place at a national or international level. To be specific, VCM allows carbon emitters to offset their unavoidable emissions by purchasing carbon credits emitted by projects targeted at removing or reducing GHG from the atmosphere (note: carbon credits are of two types: avoidance and removal).

Unlike compliance market (regulated by the government Emission Trading System or ETS) which usually includes only a limited number of participants, VCM has different players and mostly includes private companies/firms.

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ETS
VCM
Market participants

Subjects of ETS (limited number of economic sector, operators, offset projects)

Legal persons,governments

Volume of the market

$850 bln (2021)

$ 2 bln (2021)

Validation / Verification

According to the national legislation

According to international standards (VERRA, GS and etc. )

Coverage

Region /Country

Carbon footprint of legal persons, country.

Contribution

Country NDC

Do not have fixed geographical area

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