Carbon markets are complex. Knowing the value and risks of a carbon assets allows investors to realize the full potential of their projects in the long-term.
GreenCollar Group works with buyers and project developers alike, tailoring due diligence services to help our clients understand realistic estimates of possible outcomes, or gain insight into any and all risks associated with a project along with options to mitigate these early on. Due diligence, based on client preference, can be anything from a quick initial assessment or a full-fledged due diligence process. It can also cover an entire portfolio rather than an individual project.
Risks typically associated with carbon credit projects which are included in our due diligence include:
- Assessment of host country risks (legal and political risks)
- Evaluation of counterparty risks (experience, capacity, reputation, financial standing, contract management and ownership structure)
- Testing project risks (feasibility, implementation, permits, legal structure)
- Estimate carbon credit yields (registration, additionality, methodology, carbon credit estimates, carbon credit ownership)
- Assess carbon credit generation and delivery risks