Carbon markets, which include mechanisms like cap-and-trade systems and carbon offsets, are increasingly being used as a tool to incentivize emissions reductions and help in the fight against climate change. So, statement 1 is true.

Carbon markets typically work by transferring resources from emitters (usually in the private sector) to entities that can reduce or remove greenhouse gas emissions, which can be either private entities or the government. So, statement 2 can also be true.