A carbon exchange is a market mechanism that incentivises the reduction of greenhouse gas emissions and plays a vital role in combating climate change. This system generates tradable credits for projects that achieve emission reductions or carbon absorption. Companies, governments and other organisations can buy and sell emission permits through the carbon exchange, allowing them to effectively manage their carbon footprint. The carbon exchange is based on the principle of "cap and trade", which envisages setting an emissions cap and gradually reducing it over time. This mechanism ensures that total emissions are limited and reduced cost-effectively through market dynamics.

This system,

• Incentivises companies and governments to reduce carbon emissions.
• Rewards emission reduction economically and reduces costs.
• Enables the realisation of carbon reduction with the most cost-effective methods.
• Increases awareness of managing and reducing carbon footprint.
• Encourages co-operation to combat climate change on a global scale.
• Facilitates attracting capital for green projects and sustainable investments.

As a result, the carbon exchange is a global tool that supports sustainable development and combats climate change.