Environmental Markets: Opportunities and Risks for Business

Businesses need to pay closer attention to the natural systems on which they rely, says this report. It describes market mechanisms being used by companies to protect ecosystem services (emissions trading, conservation banking, philanthropic programs); lists some of the risks companies face when they engage in environmental markets (high transaction costs, increased regulatory scrutiny, lack of guarantees) as well as the opportunities associated with engagement (regulatory certainty, avoid project delays, enhancing economic development in emerging markets); and suggests questions companies should ask to get started.