What is the risk level of carbon trading?

As with any investment, trading carbon credits carries a certain degree of risk. 

The main risk associated with trading carbon credits is the potential for policy shifts that could impact the demand or price of credits. For example, a change in emissions regulations or a decrease in demand for carbon credits could result in a decrease in their value.

Another risk is the uncertainty surrounding the effectiveness of carbon offset projects. While all registered projects are scientifically evaluated and verified to ensure that they are achieving the intended emission reductions, there is still a degree of uncertainty associated with the volume of credits produced and the long-term effectiveness of these projects.
 
Additionally, the carbon credit markets are relatively new and are subject to fluctuations in supply and demand.  

However, despite these risks, many investors and companies view carbon credits as a valuable investment due to the potential for financial returns and their unique positive impact on the decarbonization of the economy. As with any investment, it is important to conduct thorough research and consult with a financial advisor to assess the potential risks and rewards before trading carbon credits.