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Compliance Market
Definition:
A Compliance Market is a market for carbon offsets created by the need to comply with a regulatory act. In a Cap-and-Trade emissions reductions market, actors buy and sell carbon offsets to comply with the cap or limit imposed on their emissions. This is in contrast to a voluntary market where participants purchase emissions reductions for public relations or personal reasons. Examples of compliance carbon markets are the Kyoto Protocol, the European Union emissions trading system, California emissions trading system, Australia emissions trading system, British Columbia emissions trading system, and the New Zealand emissions trading system.
Source:
United Nations Framework Convention on Climate Change
Category:
Regulatory and Accounting Vocabulary
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Carbon Finance Lexicon
The text is derived from the Finance and Carbon Markets Lexicon prepared by the Forest Carbon, Markets and Communities (FCMC) Program and Tetra Tech ARD and reviewed by the United States Agency for International Development (USAID).
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CARBON FINANCE LEXICON
Afforestation, Reforestation and Revegetation Methodology Vocabulary
Agriculture Land Management Methodology Vocabulary
Avoided Conversion of Grasslands and Shrublands Methodology Vocabulary
Carbon Pools Vocabulary
General Carbon Accounting Methodology Vocabulary
Improved Forest Management Methodology Vocabulary
Peat Rewetting and Conservation Methodology Vocabulary
Performance Vocabulary
Reducing Emissions from Deforestation and Degradation Methodology Vocabulary
Regulatory and Accounting Vocabulary
Risk Management Vocabulary
Valuation Vocabulary
Acronyms and Abbreviations
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