2026-07-01http://hdl.handle.net/123456789/417055Carbon transactions are defined as purchase contracts or ERPAs (Emission Reductions Purchase Agreements) whereby one party pays another party in return for greenhouse gas (GHG) emissions reductions that the buyer can use to meet its compliance or corporate citizenship - objectives vis-a-vis GHG mitigation. Payment is made using one or more of the following forms: cash, equity, debt, or in-kind contributions. This paper includes the following headings: executive summary; methodology; allowance-based markets; project-based markets; investment climate and regulatory environment; and regulatory outlook.application/pdftext/plainCC BY 3.0 IGOhttp://creativecommons.org/licenses/by/3.0/igoWorld BankAbatementaccountingAir Resourcesapproachasset classASSET CLASSESasset managersavailabilityaverage priceaverage pricesbalancebank guaranteesbidsBiomassbrokeragebrokerage housescall optioncapital marketsCARBONCARBON ASSETcarbon assetsCARBON CAPTUREcarbon creditscarbon dioxidecarbon dioxide equivalentcarbon emissioncarbon emissionsCarbon FinanceCarbon FundsCARBON MARKETcarbon marketscarbon pricecarbon projectcarbon purchasesCarbon transactionscash flowsCertified Emission ReductionsClean DevelopmentClean Development Mechanismclean energyClimate ChangeClimate Exchangecoalcoal bed methaneCoal Minecompetitive marketConventional Energydebtdeforestationdemand for electricityDeveloping countriesdue diligenceEconomicseconomies of scaleefficiency improvementelectricityemerging marketsEmissionEmission ReductionEmission Reduction UnitsEmission ReductionsEmissionsemissions dataemissions reductionsemissions targetsenergy efficiencyEnergy SourcesEnvironmentalenvironmental integrityenvironmental protectionequipmentfairfinancial institutionsfire managementfloor priceforestryFramework Convention on Climate Changefraudfuelfuel switchingFuturesgas pricesgasesgenerationGreenhouse GasGreenhouse Gas AbatementGreenhouse Gas Emissionsgreenhouse gas emissions reductionsgreenhouse gas mitigationhost countryimportsindustrial gasesinformation disclosureinstrumentinsuranceinsurance productsintellectual propertyinternational banksInternational Emissionsinvestinginvestment activityINVESTMENT CLIMATEIssuanceJoint Implementationland useLandfillLandfill gasLatin Americanletters of creditlevieslevyliabilitymarket accessmarket aggregatorsmarket datamarket mechanismsmarket participantsmarket penetrationmarket playersmarket pricemarket pricesmarket sharemarket valuemarket volatilitymethaneminesnatural gasnitrous oxidepipelinepowerpower demandpower productionprice capprice comparisonprice controlprice distortionsprice expectationsPrice Indexprice riskPrimary Marketprimary marketsprivate equityproduction of coalproperty rightsPurchase Agreementspurchasingrate of returnregulatory frameworksregulatory systemsrenewable energyRenewable energy projectsretailRetail pricereturnsalessecondary marketsecondary market transactionssecondary marketsSettlementspot pricespot pricesspreadsubstitutionsuppliersSustainable Developmenttaxtrade regimesTradingtransactiontransaction coststransactions coststransparencyutilitieswaste managementweather patternswindwindfall profits