Developing the voluntary carbon market in uncertain policy landscapes

This report intends to help investors and companies supporting projects in the voluntary carbon market navigate emerging policy and regulatory risks. The policy landscape is highly fragmented, with most countries taking different approaches to the VCM, leaving market participants to analyse changing regulatory landscapes on a country-by-country basis.

In addition to listing the risks that capital providers should consider, the paper provides a framework to analyse the materiality of different risks.

Finally, the paper outlines a set of existing and emerging mitigation measures for policy and regulatory risks.

In this report:

• The growing interest of governments in carbon markets
• Defining host country risks
• How to conduct a host country risk assessment
• Assessing risk levels
• How to mitigate host country risks