Interest in carbon markets continues to grow as farmers, landowners, and companies seek ways to reduce greenhouse gas emissions and enhance environmental sustainability. This publication provides an overview of key concepts in carbon markets, including the definition of a carbon market, the role of carbon credits, and the reasons these markets exist. It explains the fundamental characteristics that determine the quality of a carbon credit—such as additionality, verification, permanence, leakage, and exclusivity—and highlights how agricultural and forestry practices can contribute to carbon sequestration efforts. By understanding these concepts, stakeholders can make informed decisions about participating in carbon programs and contributing to climate goals.

Jordan Shockley | jordan.shockley@uky.edu

Jacob Muller | Department of Forestry and Natural Resources