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Report: Assessing and comparing carbon credit rating agencies

  • 1.  Report: Assessing and comparing carbon credit rating agencies

    Posted 12-10-2023 09:52
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    This report is funded by Carbon Market Watch and prepared by Perspectives climate group. Carbon credit rating agencies arguably have a role to play in giving investors confidence in credits. This new study has uncovered difficulties in comparing four of the most used agencies with publicly available information. 

    Key findings and recommendations from this report include: 

    • Lack of a universally accepted and in-depth definition of carbon credit quality is a fundamental issue 

    • BeZero, Calyx, Renoster and Sylvera were assessed in this report. They aim to address the lack of standardisation by distinguishing between robust carbon credits and those not delivering on their promises. 

    • More alignment and oversight are needed for carbon credit rating agencies. Guidelines for financial credit rating agencies could serve as a blueprint. Leakage must be included in the overall score as well as mitigation activities to avoid leakage and reversals.  

    • Methodological transparency is strongly recommended 

    Does your organisation have an experience in using carbon credit rating agencies? How helpful is that in making investment decisions? 

    Aya Pariy