Carbon ratings agency BeZero Carbon this year became the only full service ratings agency in the voluntary carbon market (VCM), launching a toolkit enabling customers to assess the risk of any carbon credit type, at any stage of the project lifecycle.
The VCM, where businesses and individuals can buy, sell and trade carbon credits to reduce or offset their emissions, is a burgeoning market and is essential to reach net zero – but has been held back by a lack of transparency and integrity. The toolkit helps market participants analyse risk from project origination to retirement, giving buyers confidence in using carbon credits to make credible net zero claims.
The BeZero Carbon Rating was launched in 2022, and it has now rated more than 360 carbon credit projects all over the world to determine the likelihood that they will remove or avoid a tonne of carbon. This year, the company expanded its offering to ex ante ratings, which assess projects before they have even started issuing credits. Ex ante ratings help buyers direct capital with confidence to the most impactful areas in the primary market.
These ratings products are complemented by two tools: a scorecard, and risk adjusted portfolios tool. BeZero’s scorecard is a 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.
At the other end of the project lifecycle, the company also launched a new risk adjusted portfolios tool, to enable customers to examine their carbon credit portfolios and calculate how many credits of a given quality they would need to purchase or retire to make credible tonne based carbon offset or reduction claims.
Tommy Ricketts, CEO and co-founder, said: ‘We are 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.’