CCM

Full explainer

A Compliance Carbon Market (CCM) is one in which a regulator imposes a legal cap or obligation on covered emitters, forcing them to surrender allowances or eligible offset credits each compliance period. The EU ETS, UK ETS, California Cap-and-Trade, RGGI, China's national ETS, and South Korea's K-ETS are the largest established compliance markets. The price floor in a CCM is set by the cap stringency and the marginal abatement cost faced by covered emitters.

Indonesia's domestic carbon market is in transition toward a hybrid model: IDXCarbon currently lists both voluntary-style credits (registered through SRN-PPI) and compliance-eligible units (SPE-GRK), with the cap-and-trade phase covering coal-fired power plants under Permendag and KLHK rules. International cooperation under Article 6 — opened by Perpres 110/2025 — also creates demand for Indonesian credits from foreign compliance markets.

Related terms

• VCM
• IDXCarbon
• Article 6
• SPE-GRK