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De-Risking Carbon: The Financial Crime and Integrity Risk Assessment (FCRA) Framework
The institutions and investors deploying capital into climate mitigation are doing so at a scale alarmingly below what the transition requires. Significant capital is withheld, while emerging markets, where mitigation potential is greatest, receive only a fraction of it. The barrier is not the lack of capital. It is a risk management gap that conventional project diligence does not address.
Carbon finance flowing into emerging markets crosses jurisdictional boundaries through supply chains, beneficial ownership chains and corporate structures that traditional project risk management is not designed to focus on. Carbon credit integrity, project additionality and regulatory durability all sit downstream of who actually owns and controls the entities involved. Without rigorous counterparty and supply chain integrity assessment, carbon capital carries unmanaged exposure to fraud, bribery and corruption, sanctions risk and reputational damage.
This session presents the FCRA framework: the counterparty and transactional integrity layer that sits alongside the carbon credit standards, not in competition with them. It assesses what environmental certification does not: beneficial ownership, capital flows, sanctions and corruption exposure and the integrity of the government authorisation chain. The framework gives governments, institutional buyers and project developers structured assurance over the integrity of carbon market transactions.
