ECOSYSTEM MARKETPLACE: Can the World Bank model show us how to de-risk US environmental markets?

Published 18:02 on March 2, 2018  /  Last updated at 20:03 on September 28, 2018  /  Americas, Asia Pacific, Conversations, EMEA, Kyoto Mechanisms, New Market Mechanisms, REDD, RINs & LCFS, US, Views, Voluntary Market  /  No Comments

Given the regulatory risk that environmental markets can be altered or ended with the “stroke of a pen” from policy makers, lenders are generally unwilling to value revenue from environmental markets when underwriting projects. With this heavy, or complete, discounting of environmental market revenues, these markets fail to entice the level of investment needed for projects to generate environmental credits and provide verifiable conservation benefits. How can we reduce the risks associated with environmental credits and keep these critically important projects moving forward?

Given the regulatory risk that environmental markets can be altered or ended with the “stroke of a pen” from policy makers, lenders are generally unwilling to value revenue from environmental markets when underwriting projects. With this heavy, or complete, discounting of environmental market revenues, these markets fail to entice the level of investment needed for projects to generate environmental credits and provide verifiable conservation benefits. How can we reduce the risks associated with environmental credits and keep these critically important projects moving forward?

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