What is the difference between the EU-ETS and Voluntary Carbon Market?

Q: What is the difference between the EU-ETS and Voluntary Carbon Market?

The EU-ETS aims at reducing GHG from highly emissive industries, while the VCM funds low-carbon projects with companies committed to Net Zero.

Below are all the questions about Carbon markets: EU-ETS and Voluntary Carbon Market, regulations, rules for qualitative carbon credits, difference between avoidance and removal carbon credits and more!

The EU-ETS (or "carbon quotas") is a mechanism established by the European Union to compel highly emissive industries to decrease their greenhouse gas emissions. It is considered effective for large industrial firms that are slow in reducing their emissions.

On the other hand, the Voluntary Carbon Market is a mechanism that funds low-carbon projects essential in combating climate change. It receives support from companies committed to a Net Zero strategy who aim to make a significant contribution to the fight against climate change.

Despite both mechanisms sharing a similar name and being based on the value of carbon, they are essentially different and no longer associated with each other.

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