CHAPTER 21

Carbon Markets, Nature and Biodiversity

Pricing carbon and natural capital

Opening question

“Can nature become an investable asset?”

In this chapter

Why carbon and nature have no price until someone creates one
Compliance and voluntary carbon markets, and the bridges between them
What makes a carbon credit high quality: additionality, permanence, leakage and verification
Carbon cost exposure in a portfolio, with a worked example on a cement maker
Biodiversity loss as a financial risk, and nature-related disclosure
Forests, mangroves and blue carbon as nature-based solutions
Ways to invest, and their risks
Forest carbon and a domestic carbon market in Vietnam

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 21 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — [email protected]

Sections of this chapter

21.1 Nature's missing prices

21.2 Compliance and voluntary carbon markets

21.3 What makes a good carbon credit

21.4 Carbon prices and portfolio risk

21.5 Natural capital and biodiversity risk

21.6 Nature-related disclosure

21.7 Nature-based solutions and blue carbon

21.8 How investors can gain exposure

21.9 Vietnam: forest carbon and a carbon market in development

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