Carbon Market

Economic and industrial activities and changes in land use, such as deforestation, have resulted in a constant increase in the emission of greenhouse gases (GHG) to the atmosphere since the Industrial Revolution. A high concentration of GHGs (e.g., carbon dioxide, [Page 89]methane, nitrous oxide, hydrofluorocarbons) may in turn increase the average temperature due to the so-called greenhouse effect. On this basis, the subject has been analytically discussed at international conferences, especially at Conferences of the Parties (COP), which occur once a year in different regions of the world. A result of these discussions has been the proposition of market-based instruments to assist industrialized countries (developed countries)—hitherto the most responsible for the greatest percentage of GHGs—in reducing their GHG emissions. Another reason for the emergence of ...