BeZero partners with Green Carbon Exchange
BeZero Carbon will be the official ratings provider of carbon credits transacted on the Argentine Carbon Exchange (BACX), the Paraguayan Carbon Exchange (BPCX) and the Ecuadorian Carbon Exchange (BECX).
The Exchanges will use the BeZero Carbon Rating to help their clients make decisions about the risk of specific carbon credits.
Making comprehensive risk assessments available to buyers is key to boosting confidence and scaling investment in the voluntary carbon market.
Green Carbon Exchange (GCX) and its subsidiaries today announce a partnership that will bring BeZero Carbon ratings as a prerequisite for all listed projects within GCX’s technology platform. BACX, BPCX and BECX will use BeZero's scientific risk analysis to inform the pricing of carbon credits based on their carbon efficacy.
For the first time, the Carbon Exchanges will include verticals that help companies manage risk associated with their purchases in the carbon market such as: Proven Technology, BeZero Carbon Ratings and Insured Transactions. This will establish a premium carbon credit market with offsets from high-quality and transparent projects produced in the same countries.
The Exchanges have chosen BeZero Carbon’s ratings on an exclusive basis to provide assessments of projects in their respective countries in South America. At first, ratings for nature-based projects will be prioritised as the sector represents the most potential for the region.
The BeZero Carbon Rating provides users with a risk-based assessment of the likelihood that a carbon project will avoid or remove one tonne of CO2e on an eight-point scale. The scale ranges from AAA, representing the highest probability, to D, the lowest probability of avoiding or removing carbon, which helps market participants better understand the quality of their carbon credit investments.
This partnership will also utilise BeZero Carbon's methodology to build Carbon Funds that will be implemented on a country-by-country basis, with the goal of reaching $75 million in total and achieving the highest global rating.
BeZero Carbon’s ratings facilitate large-scale investment into the most effective climate projects, as our research reveals that credits separated by one rating notch higher on our eight-point scale can command price premiums of 30%. BeZero Carbon ratings of ‘A’ or above see a price premium around 200% higher than other BeZero-rated credits.
Aleandra Scafati, CEO at Green Carbon Exchange, said:
"We are honored to have BeZero as our exclusive carbon credit ratings agency for our Voluntary Carbon Platforms. This alliance brings governance and assures quality to our trades, since all the certificates will be rated."
Tommy Ricketts, CEO and co-Founder of BeZero Carbon said:
“Our partnership with Green Carbon Exchange and its subsidiaries in Argentina, Paraguay and Ecuador will give global buyers the greatest confidence in carbon credits produced in Latin America. For the first time, the BeZero Carbon Rating is an essential requirement listed for projects, underscoring just how important risk-based assessments are to the growth of carbon markets. The BeZero Carbon Rating is proving to be a powerful pillar in the development of high-quality carbon projects in South America, channelling finance into critical climate projects in the region."
Media contact
Dani Wiggins, Communications Manager
press@bezerocarbon.com
(+44) 7760 13618