This graphic shows the indicative flow of project-based carbon credits to various end-use sources of demand. In the past, most credits were used by companies for corporate offsetting in the voluntary carbon market (VCM), with some use in national/regional compliance carbon markets. This picture is beginning to shift to include new sources of demand for credits in the emerging compliance carbon markets, both national and under the UN.
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The Carbonwise editorial team is formed of seasoned established industry writers and specialist journalists.
11 June 2026
Nationally Determined Contributions: the national targets to reduce greenhouse gas emissions submitted by each country voluntarily under the Paris Agreement.
11 June 2026
In the context of economics, an externality is a consequence of a business or industrial activity that affects third parties but which is not reflected in market prices.
22 May 2026
CO2 emissions from the industrial sectors led to a year-on-year drop in 2025 under the EU Emissions Trading System, according to verified European Commission figures released in April.
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