The introduction of a safeguard mechanism is designed to get Australia's top emitters cutting greenhouse gas emissions to achieve our national targets. So how does it all work - and where are the opportunities for investors?

Luke Donovan, Partner - Global Carbon Markets at Apostle Funds Management, gives Sean Aylmer a 101 on carbon markets - how they work, how they provide an incentive for companies to change the way they operate, and how they measure up as an asset class.

This is general information only, and you should seek professional advice before making investment decisions.