Carbon market mechanisms, including emissions trading, Clean Development Mechanism (CDM), Reduction of Emissions from Deforestation and Forest Degradation (REDD+) and voluntary markets are seen as means of addressing climate change and other environ-mental degradation issues. The carbon market is driven by the cap and trade regimes or credits that fund or offset Greenhouse Gas (GHG) reductions. This compendium introduces learners to the principles and concepts of carbon stock assessment, carbon trading, payments for environmental services, trade processes and agreements related to carbon trading. It allows for the understanding and control of carbon stock estimation methods, methodological issues in the market and carbon trading, risks and opportunities in carbon market at global, regional and national levels.