Since the 90s, regional initiatives have been growing to fight against climate change. In 2008, the Western Climate Initiative (WCI) was introduced in North America and includes five active members and six observers. The objective is to enable participants to develop a common approach to deal with climate change.
The carbon market can be divided into two segments :
– Regulated market : the regulated market is governed by specific rules. There’s a cap-and-trade system in Quebec, since January 2013, that is governed by the Règlement concernant le système de plafonnement d’échange de droits d’émission de gaz à effet de serre (SPEDE).
– The voluntary market : the voluntary market is not governed by any specific rules, but there are certification programs that recognize the credits sold on the voluntary market. This market is made of actors who voluntarily wish to reduce or offset their emissions.
The major contribution of climate finance is to transform the environmental impact of an organization into a quantifiable and monetary value product on the market.