Carbon Contracts for Difference: A Solution to Investment Uncertainty or not?
Decarbonising industries like steel and cement is crucial for climate goals, but faced with carbon price risks and investment uncertainties. Carbon Contracts for Difference (CCfDs) offer financial stabilization for low-carbon projects, yet no design can eliminate risks fully. Dynamic benchmark adjustments may provide a balanced solution for effective investment.
Decarbonising industries like steel and cement is crucial for climate goals, but faced with carbon price risks and investment uncertainties. Carbon Contracts for Difference (CCfDs) offer financial stabilization for low-carbon projects, yet no design can eliminate risks fully. Dynamic benchmark adjustments may provide a balanced solution for effective investment.
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