Find a list of helpful terms used in the Mobilizing ERC Finance Section.
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AMC |
Advance Market Commitment |
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, trading a credit that may not yet be considered by, let alone be clearly defined, in existing regulatory frameworks. Uncertain policy and regulatory frameworks, as well as unexpected government action, policy change including expropriation, or foreign investment restrictions, fundamentally put at risk the ability of an ERC activity to generate and transfer ERCs from a given jurisdiction.
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 to finance ERC activities. For smaller economies and many subnational entities, an aggregation facility that pools multiple ERC activities can help overcome some of the challenges to accessing finance and attract large-scale private sector capital, including through issuing ERC-backed debt.