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On September 26, voluntary carbon market (VCM) solutions provider Abatable revealed its second annual VCM Investment Attractiveness Index at the Climate Week event in New York.
The Index, based on up-to-date data gathered from the VCM, showcases countries from around the world that ranked as most preferred for carbon credit investments due to their agility in adopting rules and regulations that ease voluntary carbon market transactions.
The top 5 countries currently most attractive to investors are Colombia, Kenya, Cambodia, Mexico, and Peru. These countries earned the leading five positions mostly on the grounds of their regulations that grant a stabler environment in which carbon project developers can operate.
Abatable points out that Colombia, which jumped 13 places to make the top 5 ranking, is experiencing a rise in carbon market activity and project development after introducing a carbon tax, while Kenya’s development in the same sphere was catalyzed by carbon market regulations, which the country introduced in 2024.
The evaluation of countries took into account three pillars and 24 indicators that examined investment conditions, preparedness for national and international carbon markets involvement, and available opportunities for improvement of social and environmental conditions on the VCM.
Other data evident in this work is the year-by-year change of the level of government engagement with voluntary and compliance carbon markets, as well as the number of projects active in every country, along with the supply of in-demand CO2 credits.
Overall, the Index shows a growth in investment in the VCM brought on by the compliance schemes introduced by different countries, providing integrated carbon crediting mechanisms.
Relevant: Abatable: A Catalyst For Climate Action
Abatable shared that compliance measures are expected to increase as the pressure for accelerated climate action keeps growing.
With this Index, Abatable aims to provide market participants with a tool for de-risking their operations on the VCM, stimulating transactions based on informed decisions. This list offers comprehensive data that can serve as valuable guidelines for governments, investors, carbon credit buyers, and project developers as they map out future plans.
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