Reports

Giving Credit: Strengths and Weaknesses in Carbon Credit Markets and Opportunities for Philanthropic Investors

Cyrus Kharas and Eric Campbell

Carbon credit markets have advanced significantly over the past several years, creating compelling new investment opportunities for philanthropists who care about making our society more sustainable by reducing emissions. Carbon credits are complex financial instruments designed to facilitate the growth of a variety of projects that reduce the amount of carbon dioxide in the atmosphere, such as reforestation initiatives or renewable energy development. As this report details, carbon credits can be an effective way for investors of all kinds to help ensure these projects receive the funding they need.

 

 

 

However, as we describe in the report, these markets are still working to overcome several obstacles that are currently limiting their potential, including the need for continued corporate support; a larger workforce; and greater standardization, transparency, and clarity into the rules and regulations that govern how the credits are issued and exchanged.

In this report, we suggest several strategies savvy philanthropic investors can employ—whether they’re new to the market or seeking to increase their engagement. Click below to read our full assessment of the market’s potential, its challenges, and opportunities to get involved.

 

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