Green Carbon Exchange (GCX) and its subsidiaries have announced a partnership with BeZero Carbon to incorporate BeZero Carbon Ratings as a mandatory requirement for all projects listed on GCX’s technology platform. Subsidiaries BACX, BPCX, and BECX will utilize 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 introduce tools to help companies manage risks related to their carbon market purchases, including Proven Technology, BeZero Carbon Ratings, and Insured Transactions. This will establish a premium carbon credit market with high-quality, transparent offsets from projects in the same countries.
The Exchanges have exclusively chosen BeZero Carbon to provide project assessments within their South American operations. Initially, the focus will be on nature-based projects, given the sector’s potential in the region.
The BeZero Carbon Rating offers a risk-based evaluation of the likelihood that a carbon project will avoid or remove one tonne of CO2e, using an eight-point scale ranging from AAA (highest probability) to D (lowest). This helps market participants gauge the quality of their carbon credit investments.
Additionally, this partnership will leverage BeZero Carbon’s methodology to establish Carbon Funds on a country-by-country basis, aiming for $75 million in total and the highest global ratings.
BeZero Carbon’s ratings support large-scale investment in effective climate projects. Research indicates that carbon credits rated one notch higher on their eight-point scale can command price premiums of up to 30%, while credits rated ‘A’ or above see price premiums around 200% higher than other BeZero-rated credits.
Aleandra Scafati, CEO at Green Carbon Exchange said, “We are honoured 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.”
