The most popular carbon credit used as the offset is the Certified Emission Reductions (CERs) which is the carbon credit generated from the Clean Development Mechanism (CDM) project activity. This thesis examines how to manage risk in the CDM market. Three categories of risks were found: 1) compliance risk; 2) non-creation risk; 3) volume risk. The top-down approach was applied to assess the risks by using the global CDM pipeline data as an input. In the end, the statistically analysis provides the result of assessment from each type of risk. The results show that project type and...