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.
Content up-to-date at time of publication
The Carbonwise editorial team is formed of seasoned established industry writers and specialist journalists.
2 September 2026
A mechanism deployed under the EU Emissions Trading System to remove a volume of carbon allowances from circulation in the market.
27 August 2026
In order to ensure the global reduction in GHG emissions, carbon reductions need to be permanent. Permanence is considered when approving a carbon offset project such as avoided deforestation.
27 July 2026
On 17th July, the European Commission unveiled its much-anticipated legislative proposal to overhaul the EU’s compliance carbon market, the EU Emissions Trading System (EU ETS).
Partner with the Carbonwise team to produce innovative educational content on Carbon Markets
Partner with the Carbonwise team to produce innovative educational content on Carbon Markets.
