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AirCarbon Exchange teams up with BeZero on carbon rating
Partnership provides additional layer of transparency and choice for participants
The Asset 26 Jul 2021

AirCarbon Exchange (ACX), a Singapore-based digital exchange for trading environmental projects and carbon credits, has integrated the BeZero Carbon Ratings (BCR) onto its platform.  The BCR, created by London-based climate solutions provider BeZero Carbon, assesses the carbon quality of different offset projects.

The BCR provides an additional layer of assessment for carbon projects accredited by voluntary offset standards such as VCS, Gold Standard, ACR, CAR and Plan Vivo. Using a scale (from AAA+ to A), BeZero rates offsets by the probability that a credit achieves a tonne of carbon dioxide equivalent (CO2e) avoided or removed. An AAA+ rating represents a 90% or more chance that the credit truly equals a tonne of CO2e, while a rating of A represents a 30-40% chance.

The BCR is calculated by taking a weighted average score of six risk factors: additionality, over-crediting, leakage, permanence/enforceability, perverse incentives, and the political environment. 

BeZero’s dedicated team of carbon credit scientists uses a blend of qualitative and quantitative analyses to assign a rating, including satellite imagery, machine learning and data-driven techniques.

The BCR database consists of a deep well of project documents, academic papers, public datasets, economic indices, and satellite imagery. Top-down and bottom-up factors are considered for each project score.

Thanks to the integration, all carbon credits listed on ACX will be given a BeZero Carbon Rating, allowing offset users on the exchange to filter projects against the rating.

William Pazos, ACX co-founder and managing director, says: “BeZero Carbon Rating gives our members more granularity around the type of offsets transacted while maintaining the standardization infrastructure pioneered by ACX. Corporates and individuals looking to offset their emissions can now refine their searches to match their carbon objectives.”

BeZero co-founders Tommy Ricketts and Sebastien Cross add: “Transparency and trust are essential for the carbon markets to fully mature and achieve climate impact. At present, the only measure of quality in the voluntary carbon markets is accreditation from one of the major carbon crediting bodies. While this goes a long way to ensuring standards, market participants need a tool to understand the variation in carbon returns that still exist. This is why we created the BeZero Carbon Rating.”

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