CARBON CREDIT COMMERCE RISKS AND THEIR MANAGEMENT

摘要

The introduction of controls on carbon emissions through a “market based” mechanism will create financialrisks for companies, including renewable energy enterprises and financial institutions. This paper presents workon assessing those risks, and the progress of the insurance industry in providing risk transfer solutions for them.It concludes that the insurance industry can go a long way to absorbing risks arising for a carbon controlledeconomy, but that the industry, together with other areas of the private sector, needs to seek to influence thedetailed arrangements for carbon controls and trading to limit the potential risks.