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Carbon Credit Ratings Service

Carbon Credit Ratings Service is an independent service that was launched by Carbon Rating Agency on June 25th at London Stock Exchange. It is supposed to provide elaborate ratings to various participants of carbon markets.

Carbon credit ratings service was launched by Carbon Rating Agency. It was introduced at 9:30 am on June 25 and the launch took place at London Stock Exchange. A carbon credit ratings service is supposed to increase the amount of clarity and skillfulness in global carbon markets, which have been growing at a rapid rate. This service is expected to provide elaborate ratings on carbon offset properties.

Carbon credit ratings service are to offer their services in markets like clean development mechanism, voluntary and joint implementation markets. Every asset that is being analyzed is supposed to be provided a rating on basis of certain factors like comprehensive analysis of underlying projects.

This would lead to an assessment of the fact that whether that particular asset would be able to achieve its already declared carbon emissions reduction goals within the stipulated period. There are also other factors taken into consideration like advantages to be procured from that project from point of view of social and economic benefit.

Ratings would be provided to participants of carbon markets on a mandated basis as well as via Market Initiated Ratings Service of Carbon Ratings Agency. This will provide subscribers opportunity to get access to an illustrative group of carbon asset ratings on a regular basis.

As per this service an AAA rating would be provided to offset assets that have lowest risk potential and highest quality. C and D would be provided to ones that have highest amount of risk associated with them. It is normally assumed that these are most unlikely to satisfy their declared aims. This service is expected to benefit those organizations that are looking for projects that have lowest risk exposure and are thus highly profitable.

(c) Stanley Street Labs, 2008