A fund backed by nations would need at least 2.5 billion euros ($3.3 billion) to help protect the world’s biggest greenhouse gas offset market, where prices dropped to a record in April, according to Vivid Economics Ltd.
The fund would pay more for credits from projects using certain technologies to mop up much of the oversupply in the United Nations-overseen Clean Development Mechanism for a lower cost, said John Ward, a director of the London practice that advises on energy and climate change. It would probably be backed by nations or sovereign-wealth funds, he said.
