Session 2C presentation from the 8th Strategic Dialogue of the Carbon Market Platform, 23-24 October 2023

1. 2023 Strategic Dialogue
of the
Carbon Market Platform
2

2. BeZero Carbon
3
Ratings agencies reduce information asymmetries between
buyers and sellers in carbon credit markets
● Quality was traditionally seen as binary in the
VCM. A credit is or is not a tonne.
● This is too simplistic …
modelling carbon efficacy
is complex. Project types differ widely.
● A more sophisticated, risk - based approach is
needed to ensure the VCM scales, urgently.
Moving away from
binaries…
“accredited vs. non-
accredited”, “good vs.
bad”
…to a spectrum of
probabilities
A common language of risk
The BeZero Carbon rating uses a risk-
based approach to assess the likelihood
that a carbon credit reduces/ avoids a
tonne of CO2e.

3. Implications of carbon credit rating agencies for policymakers
BeZero Carbon
4
● Carbon credit ratings agencies, such as
BeZero Carbon, demonstrate that there is
a risk associated with all carbon credit
projects .
● Governments should utilise a risk - based
approach as no binary assessment will
guarantee quality in carbon markets .
● To help manage risk governments should
require project - level assessments .
● Managing information disclosure is
important to ensure integrity and
transparency.
● Ratings can help improve carbon credit
integrity to enable use in compliance
markets.
AAA
AA
A
D
Afforestation,
Restoration and
Reforestation
Avoided
Deforestation
Improved Forest
Management
Grasslands Peatlands Feed additives
BBB
BB
B
C
Mangroves