Carbon trading is nowadays a very debated market-based strategy to address climate change and its application in developing nations is uneven and influenced by a range of systemic, economic, institutional, and behavioral factors. Although many developing countries are eager to participate in carbon markets due to the need to finance climate changes, lack of technology, and pressures of global agreements, the implementation of the mechanisms has not been steady. The chapter discusses the barriers to the introduction of carbon trading and the opportunities that have a chance to enhance its introduction in developing countries. The chapter discusses the influence of a number of factors on carbon market participation in the developing nations. It examines the combination of the preparation of institutions, policies of consistency, market infrastructure, and skills of various stakeholders. The chapter suggests a model that reveals the relationship between governance, technology and market development. Even though there is a lack of resources and regulations are ambiguous, the rising interest in the problem of climate and cooperation in the world, as well as the increasing participation of private enterprises, present some bright opportunities to increase carbon trading.