Global carbon ratings agency BeZero Carbon has today published its highest ever rating for the first publicly assessed Direct Air Capture with Carbon Storage (DACCS) project. The project, based in Iceland, has received a rating of ‘AAA’ — indicating that its carbon credits have the highest likelihood of removing one tonne of CO2e.
Direct Air Capture is a process where carbon dioxide is removed directly from the atmosphere, and DACCS is the permanent geochemical storage of this carbon.
The sector is a growing part of the engineered carbon removal market, with DACCS contributing approximately 20% of pre-issuance engineered carbon removal credits to date. It is the second largest contributor to pre-issuance credits of all engineered carbon removal methods, following Bioenergy with Carbon Capture & Storage (BECCS).
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Consensus is growing on the necessity of DACCS as an essential mechanism to reach net zero emissions, with International Energy Agency analysis finding the solution is projected to contribute up to one billion tonnes of CO2 removal towards net zero targets.
Whilst McKinsey estimates annual demand for engineered carbon removal could reach 100 million tonnes by 2030, scaling the sector is costly – making high quality removals critical to increasing confidence in the market.
BeZero Carbon has currently rated 43% of all issued engineered carbon removal credits, and 100% of DACCS issuance with this rating.
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Independent third-party ratings can help scale this nascent sector by boosting investor confidence in the quality of a given carbon credit. This helps investors understand the likelihood that credits bought will deliver on their climate claims, in turn channelling capital into vital climate solutions such as engineered carbon removals.
Dr Spencer Meyer, Chief Ratings Officer at BeZero Carbon, said: “Achieving an ‘AAA’ rating is a tremendously high bar to clear, and we’ve been deliberately cautious in issuing any until now. That’s why it’s hugely significant to be announcing our first today in what is an indicator of genuine quality in the market.”
“We’re particularly proud to publish the industry’s first public DACCS rating, as carbon removal is an essential mechanism to reach net zero emissions. The sector requires significant investment to reach the scale where it can deliver meaningful impact for the planet, and ratings are quickly becoming integral to building the confidence needed to spur demand for any type of high-quality credits.”
