News

Howden supports Abatable’s new market intelligence product for the voluntary carbon market

Published

London, 6 September 2023 – Howden is pleased to support Abatable in the launch of the carbon market’s first ‘VCM Investment Attractiveness Index’ (the Index). The Index is the first to track a nation's success in interacting with the voluntary carbon market (VCM), aiding market participants in considering countries for investment based on their risk appetite and impact goals. The Index evaluates and ranks countries based on three key indicators crucial to fostering effective VCM projects, reflecting carbon market readiness, attractiveness of investment landscape, and the environmental and social impact opportunity.

The Index, which will be updated on an annual basis, highlights the Top 40 frontrunners in advancing the VCM for climate, nature and people outcomes. The full Index will be available as part of Abatable’s new policy insights product which aims to enable datadriven action within the voluntary carbon market, and includes national assessments at a country-by-country level.

Governments can also engage with the Index to understand the policy changes required to enhance investor appeal. For example, developing an emissions forest reference level or piloting an Article 6.2 project will contribute to improving the score of a jurisdiction.

The Index methodology was developed by the carbon procurement and market intelligence firm Abatable, in collaboration with Howden, the global insurance group. This year's rankings showcase Kenya, Mexico and Peru as the three leading countries for investment and development. Kenya tops the attractiveness Index due to a strong carbon markets readiness score stemming from a mature carbon project developer ecosystem, long history with the VCM and CDM (Clean Development Mechanism) and favourable supply of in-demand credits. As it relates to the climate and people opportunity, Kenya’s VCM potential is centred around the opportunity to enhance clean cooking accessibility in rural regions.

The methodology was refined with input from Abatable’s technical advisory board, project developers and other experts. Abatable’s collaboration with Howden provided critical insight into the changing economic and political risk landscape and the challenges faced by investors in the VCM. The Index excludes Annex I nations, acknowledging the significance of climate action in these countries but recognising their access to alternative funding sources outside of the voluntary carbon market.

The Index and full methodology can be found here.

Maria Eugenia Filmanovic, Co-founder at Abatable, said: “At Abatable, our commitment lies in furnishing essential market insights and data to participants in the VCM to improve the collective understanding of such a fast-evolving market. Today, we’re thrilled to unveil the VCM Investment Attractiveness Index during Africa Climate Week as an innovative tool to assist many governments, investors, and developers to identify the indispensable conditions necessary to bolster impactful carbon projects for climate, nature and people.”

Charlie Langdale, Chair of Climate Risk and Resilience at Howden, added: “Howden is committed to helping de risk the climate transition. For investors and developers to trust in the voluntary carbon market, they must have access to reliable data and the latest risk assessments. The VCM Investment Attractiveness Index is an important step for providing this assurance, and we are proud to provide Abatable with political risk advice.”