What is carbon finance and how does it work?
Carbon finance is the general term applied to financing seeking to purchase greenhouse gas emission reductions to offset emissions in the OECD countries. Commitments of carbon finance for the purchase of carbon have grown rapidly since the first carbon purchases began less than seven years ago.
Is green bond finance accelerating the transition to a low-carbon economy?
The evidence that the current system of green bond finance is significantly accelerating the transition to a low-carbon economy is mixed. This feature explores the desirable properties of a complementary rating system that could further encourage firms to improve their carbon efficiency.
Can carbon finance fund energy access in developing countries?
The goal of carbon finance programs such as the Clean Development Mechanism (CDM) is to offset carbon emissions in the developed world while supporting cleaner development paths in the developing world. The literature has given mixed reviews on the potential of carbon finance to fund energy access.