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VCM Investment Attractiveness Index Methodology

Published: 06 Sep 2023

Last Updated: 15 May 2024

Abatable has launched its inaugural VCM Investment Attractiveness Index, which tracks and ranks countries on their appeal to voluntary carbon market (VCM) investors and project developers using specific indicators reflecting carbon market readiness, investment risks and environmental and social opportunities.

About the Index

The Index is a market-first, developed by Abatable in collaboration with insurance specialist Howden. It is designed to provide insights for investors into country-specific risks and opportunities and to aid governments in developing policies to facilitate the growth of the VCM.

Methodology

The Index rankings are based on Abatable and Howden’s assessment of the factors driving host country attractiveness when it comes to developing carbon projects for the VCM.

The Index is divided into three pillars:

  1. Global carbon market readiness, analysing the jurisdiction’s experience in hosting VCM projects and its readiness to manage its engagement with Article 6 of the Paris Agreement.
  2. Investment landscape, providing insights into the national political and economic context as a measure of the risks for foreign investors.
  3. Climate, nature and people opportunity, quantifying the potential impact of the role the VCM can play in closing the financing gap to reduce emissions, conserve critical ecosystems and improve livelihoods.

A visual representation of how the VCM Investment Attractiveness Index Methodology's scoring system works

Each pillar comprises a set of carefully selected quantitative indicators that meet our selection criteria. We ranked every country using publicly available data for each indicator which was then converted into a score (from one to 100), which we then weighted to generate the pillar score. Each pillar is then also weighted to derive the overall score and ranking in the Index.

You can download our full Index methodology and read more about the indicators that inform the rankings by filling in your details below.

To find out which other countries feature in the top 40, visit our Index page.

About Abatable

Abatable is a leading provider of end-to-end carbon market solutions. Our technology platform connects companies and climate investors to the largest network of climate projects across the globe. We exist to help every organisation build a thriving future for climate, nature and people. Get in touch if you are interested in learning more about us and how we can work together.

Download the report