Carbon markets refer to the growing space for the sale of carbon credits which has evolved in the last few years. With a wealth of natural resources on farms, including soils, crops, woodlands and trees, agriculture offers some potential for the generation of carbon assets.

Carbon markets can refer to both compliance markets (mandatory carbon reporting to national governments), and voluntary markets (optional private sector markets where carbon credits can be traded). Generally speaking, recent interest in farming for carbon credit generation is linked to voluntary markets, with increasing pressure for businesses and food supply chains to reduce their carbon footprints.

In a highly technical and often overwhelming space, this sector provides essential resources for understanding how carbon markets relate to farmers in Scotland, where the opportunities may be, and means of accessing carbon finance.