Carbon Markets are also called Emission Markets. The first market was lanched by European Union in 2008, just before the global finacial crisis. But it took a long time to really get going. Today the market is really important part of European environment plans.
But who is trading the carbon, where, and what is actually being traded?
We have several markets in different regions.
In North America, you have Western Climate Initiative, the Regional Greenhouse Gas Initiative, you have market in Newzealand. One in South Korea, and one in China.
Allowances are what will be traded in the markets. These allowances will be registered in a central registry, a bit similar to curreny.
So for these carbon central banks, and businesses, they can trade allowances.
Now one allowance in Europe is about 25 Euros. One allowances use to be very cheap, but in 2018, the price tripled from 8 Euros to 25, with a total value of 144 billion euros trading that year.
We can see the system is just really get started, a really global market does not exist yet, which produce a lot of problems for world trade.