1 is correct: Carbon markets are trading in which carbon credits are sold and bought. or individuals can use carbon markets to for their greenhouse gas emissions by carbon credits from entities that remove or greenhouse gas emissions. Several countries and have started carbon trading programs. trading is adapted from cap and trade, a approach that successfully reduced sulfur in the 1990s. markets, have at last become one of the most tools in the fight against climate change. the end of 2021 more than 21% of the world’s were covered by some form of carbon up from 15% in 2020. 2 is correct: Ever more businesses have to regulators for the right to release a tonne of carbon into the atmosphere. Investors are getting too: trading on these markets grew by 164% year, to €760bn ($897bn). Like taxes, carbon transfer resources from the private sector to state. of NDCs submitted by countries mention their to make use of international market mechanisms reduce GHGs. the World Bank estimates that trading in carbon could reduce the cost of implementing NDCs by than half - by as much as $250 bn by 2030. So, markets will likely be an effective tool against change. Hence statement 2 is the correct of statement 1.