Carbon Markets – Trade, Climate, and Net Zero Pathways: Scenarios and implications for developing countries and climate-resilient development

This briefing note unpacks what carbon markets mean for developing countries. It breaks down three main types of carbon markets:- compliance markets, voluntary markets and new multilateral frameworks emerging under Article 6 of the Paris Agreement.

The note also explores trade-related challenges, including how carbon pricing might affect competitiveness, and what recent developments mean for developing countries trying to engage in these markets.

With practical insights and future-looking analysis, the brief supports developing countries in better understanding and responding to climate-related shifts in trade and shaping fair, inclusive policies going forward