De-Risking Carbon Markets

The Paris Agreement acknowledges that countries can sell carbon credits internationally to generate revenues for a given project. To facilitate such sales, the Paris Agreement requires that parties apply robust accounting, particularly to ensure that internationally traded mitigation outcomes are not double-counted. Timing mismatches of corresponding adjustments made between selling countries and buyers can pose a potential regulatory risk.

A potential solution to this challenge is using political risk insurance as a mitigating tool, and the workshop will discuss the opportunities and challenges associated with this solution.