Protecting Carbon Markets From Boiler Room Activities: Overview and Recommendations for Market Participants

In 2010, reports of boiler rooms operating in carbon markets and selling emissions reduction credits (carbon offsets) as investments began to emerge out of the U.K. In 2013, CRS began work examining what investor protections are needed in carbon markets, particularly in voluntary OTC markets, and what practices market participants could adopt to regulate carbon investments and enhance protection against deceptive sales tactics. This report summarizes our recommendations, which are aimed at increasing consumer and investor protection, with broader climate policy and market-stability benefits.