This publication explores the funding of project-based carbon reduction projects in the UK by:
- surveying potential sources of supply and demand for such emission reductions
- examining the regulatory hurdles that need to be overcome to put a funding mechanism in place.
It recommends the creation of a comprehensive reporting framework for carbon reduction projects in the UK that can accommodate the variety of projects and carbon accounting and financial methodologies already in place for funding such projects. The ultimate goal of such a reporting framework will be to create a new asset class, namely project-based carbon reductions in the UK, so that the investment capital required to fund such emission reductions and help the UK to meet its climate change targets can be deployed most effectively across the entire range of voluntary and regulated projects in the UK.
Table of Contents
1. Background 2. What is a Carbon Reduction Project? 3. Quality Criteria for Carbon Reduction Projects 4. Challenges in Applying Quality Criteria to UK Projects 5. Demand for UK Projects 6. Supply of UK Projects 7. The Cost of Emission Reductions from UK Projects 8. Overcoming Regulatory Hurdles 9. Conclusions 10. References and Abbreviations Appendices: Draft Framework for Reporting on UK Project-Based Carbon Reductions. Gentoo Housing's Retrofit Reality Housing Refurbishment Scheme. Application of the Reporting Framework to Gentoo Housing’s Retrofit Reality Housing Refurbishment Scheme