Abatable’s VCM Investment Attractiveness Index, a leading resource for navigating the complex world of carbon markets, has released its second annual report, revealing the top countries primed for carbon market investment. This year, Colombia, Kenya, and Cambodia emerge as the most attractive destinations, solidifying their positions with a blend of strong regulatory frameworks, Article 6 readiness, and ample supplies of in-demand carbon credits.
The index, unveiled at Climate Week NYC, provides investors, governments, carbon credit buyers, and project developers with valuable insights into the current voluntary carbon market (VCM) landscape and its future potential. The top five countries—including Mexico and Peru—are lauded for their regulatory strides, creating a more stable and predictable environment for carbon project development and investment. Colombia’s carbon tax, for example, has sparked significant market activity and spurred project development, while Kenya’s updated carbon markets regulation in 2024 has created a robust and project-friendly environment.
The ranking process is based on three pillars and 24 indicators, encompassing a country’s investment landscape, its readiness to engage with national and international carbon markets, and the opportunities available for the VCM to enhance its environmental and social impact. Notably, Colombia and Cambodia make their debut in the top five, pushing Ghana and Malawi to 8th and 11th place, respectively. Colombia’s remarkable jump of 13 places and Cambodia’s four-place leap solidify their emergence as attractive investment destinations.
The index reflects a growing trend towards robust and sustainable carbon markets, with countries leading the way in implementing policies that support the achievement of credible climate action goals. The report also underscores the varying levels of risk and complexity within the investment landscape, highlighting the importance of informed decision-making. Abatable empowers stakeholders with the necessary insights and tools to de-risk their investments and drive success within the VCM.
Pedro Carvalho, Head of Policy and Markets at ecosecurities, emphasizes the index’s crucial role in supporting investment decisions during a period of significant global transition. “Abatable’s VCM Investment Attractiveness Index is a powerful tool to support investment decisions in the VCM. In a moment of global transition, with emerging regulations articulating carbon market provisions and innovative approaches continuously being developed, there are many factors to consider in the creation of successful carbon projects and carbon markets. Abatable’s Index, which can guide not only investment decisions but also public policy development, is thus a very relevant and important addition to the space.”
The index also sheds light on the significant impact of compliance schemes with integrated carbon crediting mechanisms, which offer a powerful incentive for investment. As global pressure mounts to meet ambitious climate targets and address carbon import taxes, the growth of these compliance schemes is expected to accelerate.
Valerio Magliulo, Co-Founder and CEO of Abatable, emphasizes the importance of reliable information in navigating the evolving carbon market landscape. “The carbon market landscape continues to evolve and with this, access to trustworthy, reliable information to guide investment decisions becomes extremely important. The VCM Investment Attractiveness Index is a critical tool that helps democratise carbon market data for the benefit of participants across the market, enabling them to make informed decisions and navigate the VCM, ultimately helping to scale the market as a whole.”
Abatable’s VCM Investment Attractiveness Index serves as a valuable resource for navigating the complexities of carbon markets, providing a comprehensive framework for informed decision-making and driving progress toward a more sustainable future.
