Organizations may be compelled to participate in a regulated carbon program or may choose to participate in a voluntary one. Regulated programs are based on government regulations and policies, compelling organizations to fulfill their annual cap obligations. Voluntary programs act in a similar way, but they function outside of government oversight. Why have companies been motivated to engage in voluntary carbon markets? The reasons are varied but they include:

Meeting voluntary corporate reduction targets

Preparing for potential regulatory requirements

Acknowledging investors’ increasing awareness of risks associated with carbon emissions