> For the complete documentation index, see [llms.txt](https://docs.excarbon.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.excarbon.co/introduction/what-is-carbon-markets.md).

# What is Carbon Markets

A carbon market is a system designed to regulate and incentivize the reduction of greenhouse gas emissions, particularly carbon dioxide (CO2) and other pollutants contributing to climate change. It operates on the principle of cap-and-trade or carbon pricing, aiming to limit overall emissions while allowing flexibility for industries and organizations to meet their reduction targets.

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