Global carbon ratings agency BeZero Carbon has partnered with the leading technology-led benchmark provider General Index, to share ratings and better align carbon credit quality with price.
The BeZero Carbon Rating provides customers with a risk-based assessment at a project level on an eight-point scale – helping market participants to better understand the quality of their carbon credit investments. Now, in an industry-first partnership, the BeZero Carbon Rating will be incorporated into GX’s price calculations for voluntary carbon credits.
GX will use carbon credit price data for individual projects, then aggregate data provided by BeZero Carbon to create ‘price baskets’ for carbon credit projects.
This project will bring further credibility to the voluntary carbon market and encourage greater liquidity in better quality projects – allowing investment to scale in the projects that genuinely will make a difference to the environment.
This partnership follows a report published by BeZero Carbon earlier this month which found that, since April 2022, carbon credits in the three highest notches of the BeZero Carbon Rating scale commanded a price premium of around 80% above other, lower-rated credits.
Tommy Ricketts, CEO and co-founder of BeZero Carbon said: “Ratings are essential to enable the burgeoning carbon market to mature. We’re delighted to be working with General Index to embed the importance of quality in carbon pricing, and hope that this partnership will bring about greater liquidity for some of the most impactful climate projects across the globe.”
Neil Bradford, Founder and CEO of General Index said: “GX is further expanding its line-up of energy transition prices in 2024. This partnership with BeZero presents a perfect opportunity to bring credible, objective carbon credit price transparency to market participants, and offer a truly technology-led solution for better managing the world’s fragile resources.”
