December 8

Ratings Embed Integrity into Carbon Markets


BeZero Carbon toolkit assesses the full project lifecycle

Financing Decarbonisation: The Global Challenge and the Need for Innovative Solutions

The climate transition is a global financial challenge – the cost of decarbonisation varies drastically around the world, and governments alone cannot foot the bill. We need another solution, one which mobilises the billions of dollars required to fund climate action and directs it to the areas where it can have the biggest impact. 

Enter: the voluntary carbon market (VCM), where businesses and individuals can buy, sell and trade carbon credits to reduce or offset their emissions. This burgeoning market has immense potential as a mechanism for global change and could help close the emissions gap to avert climate disaster. 

The COP28 Presidency is prioritising work to grow this market, emphasising the vital role carbon markets have to support decarbonisation in developing countries. But the VCM is a nascent market that has been held back by a lack of integrity. In order to scale investment and give buyers confidence once more in their carbon credit claims, we need project-level risk assessments. 

Enhancing Market Integrity: BeZero Carbon’s Role in the Voluntary Carbon Market

Carbon ratings agency BeZero Carbon offers this solution – providing a full service risk toolkit for any carbon credit type, at any stage of the project lifecycle. Using advanced geospatial frameworks, machine learning, and satellite imagery technologies such as LIDAR, BeZero Carbon has produced assessments of the likelihood that a project removes or avoids a tonne of carbon for more than 360 projects worldwide.


Innovative Tools for Credible Carbon Claims: BeZero Carbon’s Cutting-Edge Solutions

As the VCM has developed, so too has BeZero Carbon innovated. In the last six months, BeZero has developed a suite of tools to support supply-side integrity and buyers wanting to make credible claims in the market, including a scorecard, ex ante ratings, and a discounting tool.

BeZero Carbon’s scorecard is the only self service tool on the market to assess live or early stage projects – so buyers can screen or shortlist projects they may be interested in. 

The ex ante rating provides comprehensive risk assessments of carbon credit projects, before they generate any credits. Currently for every dollar invested in the secondary carbon credit market, where credits have already been issued, three to five dollars is invested in the primary carbon market – ex ante ratings will help buyers direct capital with confidence into the areas that have the most impact.

At the other end of the project lifecycle, BeZero Carbon published a first-of-its-kind methodology and tool to retire carbon credits based on carbon credit quality – allowing buyers to assess how many credits they’d need to retire to make a convincing net zero claim.

Tommy Ricketts, CEO and co-Founder at BeZero Carbon said: “We’re proud to be the only full service carbon ratings agency. The voluntary carbon market is a complex and burgeoning market, and rightly should be at the heart of international climate finance discussions like COP28. BeZero Carbon provides comprehensive project-level assessment for any credit, at any stage in its lifecycle. This helps embed integrity into the VCM, so the market can scale to deliver genuine climate action and accelerate us forward in the global race to reach net zero.”

Find out more about COP28 campaign