The focus of this study is to explore how carbon markets have been effective in motivating companies to reduce carbon emissions globally. Through the setting of emission quotas and a series of fair and strict trading rules, the carbon market not only stimulates the intrinsic motivation of enterprises to reduce greenhouse gas emissions but also pushes forward climate governance on a global scale. This paper elaborates on the theoretical basis and operational mechanism of the carbon market, especially its key role in facilitating enterprises to reduce emissions through economic incentives, improving their ability to comply with environmental regulations, creating more market access opportunities, promoting innovation in environmental technologies, and enhancing the green brand image of enterprises in the eyes of the public. This study aims to provide insights for business managers to help them optimize their carbon reduction strategies and references for policymakers to promote corporate emissions reduction more efficiently and accurately when formulating relevant policies to jointly address global climate change challenges.
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