Carbon Markets: Steps to create a recognisable market and asset class

_{^{Carbon markets:}}

Steps to create a recognisable market and asset class

White paper

_{September 2025}

In an era marked by rapid changes, from global technology to shifting economic landscapes, the financial services sector stands at a pivotal crossroads.Contents

Executive
summary

^{Section 1:}

The need for carbon as

a recognisable market

^{Chapter 1:}

The need for
carbon markets

^{Chapter 2:}

Supporting
demand

^{Chapter 3:}

Creating a
financial market

^{Section 2:}

How to build a recognisable market

^{Chapter 4:}

Accounting treatment

^{Chapter 5:}

Legal nature
of carbon

^{Chapter 6:}

Regulatory treatment

^{Chapter 7:}

Data

Contacts

Thank you for reading

Technical note

This white paper uses the term carbon to mean “CO₂ equivalent”. Therefore, all references to carbon, unless otherwise stated, cover all possible tradeable (i.e,. removable or avoidable) greenhouse gasses.

It is recognised that there are potentially significant wider benefits associated with carbon projects and units, and that these may result in price differentials as well as wider measurement and reporting activities. Consequently, analysis in this paper is restricted to carbon, in order to focus on the market structure needed to support the delivery of carbon projects and markets.