
From design to issuance: a comparative review of project execution risk
Here are some key takeaways
Carbon ratings are a necessary tool to drive market confidence; at the same time, assessing project execution and delivery risk is equally critical to provide assurance that promised credits will be delivered.
Project execution risk varies significantly across project types, with Nature-Based Solutions projects clustering at the lower end of the risk spectrum and Engineered Carbon Removals projects displaying a more dispersed risk profile, reflecting the greater diversity and varying maturity of underlying technologies.
Execution risk decreases as projects mature: on average, each notch on the BeZero project execution risk scale corresponds to approximately 1.1 years' difference in implementation timeline.