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All in on Climate: The Role of Carbon Credits in Corporate Climate Strategies
A special report delievered by Ecosystem Marketplace.
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Introduction to Emission Reduction Credits
The World Bank Emission Reduction Program (ERP) aims to help countries leverage the benefits of Emission Reduction Credits (ERC) markets, including increased revenue streams, reduced emissions,…
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Policy Context of Emissions Reduction Credit
table, th, td { border:1px solid #ffffff; padding:10px } Global ERC markets remain fragmented and heterogenous across sources of both supply and demand and are shaped by evolving policy and…
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Classification of Emissions Reduction Credit
table, th, td { border:1px solid #ffffff; padding:10px } An emissions reduction credit (ERC) is a discrete unit which represents a specific amount of greenhouse gas (GHG) emissions reduced…
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Article 6 Transaction Structures Report
This report gives an overview of the transaction structures envisaged in a range of Article 6 pilots and other carbon transaction initiatives that are looking to apply corresponding adjustments.
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Abbreviations: Mobilizing ERC Finance
Find a list of helpful terms used in the Mobilizing ERC Finance Section.table, th, td { border:1px solid #ffffff; padding:10px } AMCAdvance Market CommitmentA6.4ERArticle 6.4 Emissions…
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Aggregate ERC Activities
table, th, td { border:1px solid #ffffff; padding:10px } For smaller economies and many subnational entities, an aggregation facility that pools multiple ERC activities can help overcome some…
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Expand ERC-Backed Debt Issuance
table, th, td { border:1px solid #ffffff; padding:10px } table, th, td { border:1px solid #ffffff; padding:10px } With targeted DFI support, entities in EMDEs could issue ERC debt…
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Key Findings to Scale Up Private Sector Capital for ERC Activities
table, th, td { border:1px solid #ffffff; padding:10px } DFI pilots to attract commercial investment to ERC activities have been highly informative but limited in their ability to scale.…
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Political Risk Insurance
table, th, td { border:1px solid #ffffff; padding:10px } Political risk insurance (PRI) can help mobilize ERC financing through broadly insuring against general political risks that deter…
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Establish an ERC Club
table, th, td { border:1px solid #ffffff; padding:10px } Pooling demand through an ERC buyer’s club could send a strong market signal and improve the expected cash flows of ERC activities,…
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Political Risk for ERC Activities
Political risks are acute for ERC activities and arguably the most important and challenging to address to attract capital. ERC markets are fundamentally policy driven and still relatively novel,…
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Market Risk for ERCs
table, th, td { border:1px solid #ffffff; padding:10px } Demand for and trade of ERCs are steadily increasing, see ERC Market Status, but ERC market risk remains high and still needs to be…
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Scaling Finance for ERC Generation
These sections provides an overview of key findings to attract commercial investment for ERC activities and help scale ERC finance, including examples of how the bond or debt raise could be used…
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Government Engagement and Public Sector Participation
table, th, td { border:1px solid #ffffff; padding:10px } Irrespective of the level of maturity of the ERC policy environment, the primary strategy for mitigating political risk is early…
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Cross-border ERC Trade
table, th, td { border:1px solid #ffffff; padding:10px } Countries will need to decide whether to allow ERCs to be traded outside the country (e.g., through Article 6 mechanisms), thereby…
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Fund: Liveligoods Carbon Fund 3
table, th, td { border:1px solid #ffffff; padding:10px } FORESIGHT SUSTAINABLE FORESTRY (FSF)IssuerLivelihoods FundsKey LessonsLCF3 leverages synergies between corporates seeking secured access…
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Rights to ERCs and Their Benefits
table, th, td { border:1px solid #ffffff; padding:10px } The ability to demonstrate ownership of carbon rights is critical to the ability to generate and transfer ERCs in all carbon market…
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ERC Activity Risk
table, th, td { border:1px solid #ffffff; padding:10px } The ability of an ERC activity to produce ERCs and bring them to market underpins all ERC financing, but operational and reputational…
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Credit Risk in ERC Finance Transactions
table, th, td { border:1px solid #ffffff; padding:10px } Credit risk is a major, fundamental consideration in every ERC finance transaction. Lenders to ERC activities or developers may incur…
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Key Enablers of ERC Finance
Through a series of working group meetings and additional consultations with experts in the field of ERC finance, the World Bank ERP Finance Working Group identified four key risks that influence ERC…
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Equity: The London Stock Exchange and Foresight Sustainable Forestry
table, th, td { border:1px solid #ffffff; padding:10px } FORESIGHT SUSTAINABLE FORESTRY (FSF)IssuerForesight Sustainable Forestry (FSF)Key LessonsFSF’s success raising capital as the first…
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Financing structures to address key risks
Though the ERC market is still in the lower half of its financing curve, see Figure 5, there are some promising examples of financial structures that have successfully tapped into capital markets or…
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ERC Market Status
table, th, td { border:1px solid #ffffff; padding:10px } After a period of rapid growth in ERC supply and market value, ERC markets faced multiple headwinds in 2022 and 2023. Over 512 million…
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Current Landscape of ERC Financing
table, th, td { border:1px solid #ffffff; padding:10px } IntroductionFinance available for ERC generation is increasing and mostly targeting nature-based activities. Publicly disclosed upstream…