The Forest Carbon Index illuminates the geography of potential forest carbon investments by compiling and mapping quantitative localized data relating to biological, economic, investment, and market readiness conditions.
Profit Potential: Raw profit potential is calculated by subtracting the expected cost of managing a piece of land for forest carbon from expected forest carbon revenues. The Index measures profit potential by looking at biological and economic factors.
Risk: The Index discounts raw profit potential by taking into account the institutional, technical, and political risks within a country. It incorporates widely accepted data from the World Bank about governance conditions (including corruption) and the ease of doing business.