The Paris Agreement Carbon Market There are 3 different types of carbon markets: Regulated (ETS-Emissions Trading Schemes), Voluntary (VCM-Voluntary Carbon Market) and
the Paris Agreement Carbon Market.
The Paris Agreement Carbon Market was established after Article 6 was signed by all 196 countries to establish a new carbon market mechanism. It allows governments to issue Sovereign Internationally Transferable Mitigation Outcomes (ITMOs) and trade them bilaterally, or with the private sector.
The future carbon market opportunity and scalability is in this 73.8% global carbon emissions gap.
*INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS (IOSCO) defines the Paris Agreement Carbon Market as “…A compliance offset market. These are markets falling under Article 6.4 of the Paris Agreement; with the United Nations acting as the Supervisory Authority.”
What is Sovereign Carbon?
Sovereign Carbon is a carbon reduction/removal unit created under the UNFCCC Paris Agreement. Sovereign Carbon has unique attributes compared to other carbon credits.
The Carbon Credit Matrix
Unlike other Carbon Credits, Sovereign Carbon is in the Top-Right corner of the Carbon Credit Matrix: (x-axis Carbon Impact & y-axis Carbon Scalability). Sovereign Carbon can only be National at scale, and a Reduction and/or Removal carbon unit.