This is a type of carbon market that focuses on obligatory emissions targets. 

For example, countries or companies will purchase a certain number of carbon credits or emissions allowances to comply with a nationally or internationally mandated climate target.

Compliance carbon markets differ from voluntary carbon markets in whether or not there is a legal or regulatory obligation to use them.

Carbon Market Watch’s work on compliance carbon markets focuses on the quality and ambition of set emission targets, market design parameters and the credits generated to achieve these targets. We also focus on related issues, such as supply and demand for credits or allowances and the quality and quantity related to the inclusion of carbon credits in compliance markets.