Abstract
This brief explores the potential of carbon markets to promote a just transition towards a low-carbon economy. It highlights how carbon markets can create economic incentives for businesses and governments to reduce emissions through the buying and selling of carbon credits. However, the authors emphasizes the need for careful design and implementation of these markets to ensure they do not exacerbate existing inequalities or create social risks. The brief outlines a framework based on ILO guidelines for a just transition, prioritizing social dialogue, community engagement, and equitable benefits for all, particularly those historically marginalized, to ensure that carbon markets contribute to both environmental and social objectives.
