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

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 12:59 on December 19, 2023 / / Americas (US & Canada), Asia Pacific, EMEA (Europe), Nature-based Carbon (Forestry), Net Zero Transition (Industrial Decarbonisation, Transport & Heating Fuels), Other Content (Contributed Content), Voluntary (VCM Governance), Paris Article 6/PACM

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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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