What are Carbon Credit Ratings?
Carbon credit ratings are independent assessments that evaluate the quality and integrity of carbon offset or carbon removal credits. These ratings typically analyze various criteria, including the project's additionality, permanence, methodology, monitoring, reporting and verification (MRV), leakage risks, and co-benefits.
Why are Carbon Credit Ratings important?
Carbon credit ratings are important because they provide transparency and due diligence for buyers in the voluntary carbon market. With a wide range of projects and varying quality, ratings help buyers make informed decisions, differentiate high-integrity credits, mitigate risks (e.g., greenwashing), and ensure that their investments genuinely contribute to climate action.
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Frequently asked questions
Several independent organizations, like BeZero Carbon, Sylvera, Renoster, and Calyx Global, provide carbon credit ratings using their proprietary methodologies.
Common criteria include project type, vintage (issuance year), standard body (e.g., Verra, Gold Standard), additionality, permanence, leakage, buffer pool adequacy, MRV rigor, and social/environmental co-benefits.
Ratings provide an assessment of quality and risk based on available information, but they do not guarantee future performance or completely eliminate all risks. They are a tool to inform purchasing decisions.