Views on Mitigation Value and its Application

AUTHOR(S): ANDREI MARCU

The concept of Networked Carbon Markets, and more specifically the relationship between the mitigation, compliance and financial values of units in various carbon trading systems has been extensively discussed. However, better understanding of these concepts is necessary as the Paris Agreement could lead to more plurilateral efforts—such as carbon clubs—emerging. For this reason, this paper analyses the concept of mitigation value and its application, and the relationship between mitigation value and compliance value.