Carbon ratings platform BeZero Carbon updated its carbon credits rating scale, which now shows that only 15% of credits can be considered of higher quality.
Namely, the scale now ranges from an AAA rating, which represents the highest likelihood of achieving one metric ton of removed or avoided CO2e emissions, to a D rating, which represents the lowest likelihood of achieving the same quantity of CO2e avoidance or removal.
Previously, BeZero used a 7-point scale for its rating of the quality of carbon credits, which spanned from AAA (high) to A (low), as can be seen below.
Now, the scale has 8 points, where A is considered ‘high likelihood’, and it is based on this point in the scale that the platform has found only about 15% of the carbon credits issued around the world to be of high quality. Hence, these 15% are rated as A or higher on the new scale.
Number of rated projects by BeZero Carbon Rating. Source: BeZero Carbon
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Furthermore, based on BeZero’s research, these high-quality carbon credits are issued by projects predominantly in one of the following three sector groups: nature-based solutions, industrial processes and waste.
Total issuance to date of rated projects by BeZero Carbon Rating (issuance data sourced from American Carbon Registry, Climate Action Reserve, Gold Standard and Verra). Source: BeZero Carbon
So far, BeZero has rated a total of 286 carbon projects around the world, with a relatively even distribution across regions.
The updated rating scale is designed to be more intuitive and easier to understand, as it is based on a traditional financial market rating scale.
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