The Carbon Market Opportunity

Much has been discussed about the carbon market, here is how it actually works. Lombard Odier explains the difference between voluntary and compliance carbon markets and outlines the importance of high-integrity carbon projects. How investors can support companies’ decarbonisation strategies and diversify their portfolios via carbon markets.

The Nuances of Carbon Markets: Leveraging Voluntary and Compliance Markets for Decarbonisation and Portfolio Diversification

The carbon market is a complex and important system that comes with many nuances. Lombard Odier explains the difference between voluntary and compliance carbon markets, and how investors can support companies’ decarbonisation strategies and diversify their portfolios via carbon markets. Voluntary carbon markets are driven by non-mandatory emissions reductions targets and are usually small-scale initiatives, whereas compliance carbon markets are driven by a government mandate to reduce emissions. High-integrity carbon projects are essential in both markets in order to protect the integrity of the carbon market. Lombard Odier provides insight into how investors can utilize carbon markets to diversify their portfolios and support companies’ decarbonisation efforts.