Carbon policy and regulatory frameworks can impact carbon investments
Many countries that host carbon projects are currently working on policy and regulatory frameworks related to carbon markets. Carbon policy risk mainly relates to future projects and rarely acts retrospectively. Therefore, carbon policy risk is unlikely to affect purchases of existing credits. Rather, it can affect companies supporting carbon projects that will issue carbon credits in the future, as new regulations could emerge between capital deployment and credit delivery.
To mitigate carbon policy risk, companies should understand the carbon policy landscape of the country. Our team of expert can support you in identifying low-risk countries to source from.