Back to insights
A New Blueprint: how governments can design carbon markets for impact at scale

A new blueprint: How governments can design carbon credit markets for impact at scale

  • BeZero Carbon
  • Markets and Policy
Investing in carbon projects is essential to tackling climate change. Carbon markets provide a mechanism for scaling investment and climate impact, but a lack of risk-based thinking has undermined confidence and held back growth. This report sets out why and how governments should build risk into the design of carbon markets to make them scalable and sustainable.

A full PDF version of the report is available to download. Log in below to unlock.

Key recommendations

  • Risk must play a central role in the design of carbon markets, ensuring that market participants understand and manage it. Ratings can enable this when they are designed and used in the right way.

  • Governments should use ratings as they do in other markets: to ensure market participants are taking appropriate levels of risk and their incentives are aligned to achieve better climatic outcomes.

  • Writing ratings into regulation is likely to require that ratings agencies be regulated. This should come as part of a broader regulatory framework for carbon markets and should ensure ratings agencies are independent and deliver a trustworthy product to the market.

Discover more

Access this in full, and many more insights from BeZero’s team of carbon scientists, as well as project information and headline ratings, for free.

New? Register here.
Register
Already have an account?
Log in