Carbon ratings agency BeZero Carbon has partnered with global carbon market solutions provider Climate Impact X (CIX) to introduce critical carbon credit risk analysis on the CIX Exchange. BeZero Carbon’s headline ratings will now be displayed on CIX Exchange’s primary trading screen for carbon credits, providing users with project-level quality assessments to enhance their trading decisions. This partnership represents a significant advancement in developing high-integrity carbon markets, enabling financial institutions, intermediaries, and corporate buyers to make more informed investment choices for climate action projects.
The BeZero Carbon Rating, presented on an eight-point scale from ‘AAA’ to ‘D’, evaluates the likelihood that a carbon credit will successfully offset or remove a tonne of CO2e from the atmosphere. This system offers CIX Exchange users valuable insight into the link between credit price and quality, enhancing understanding of carbon credit liquidity.
CIX Exchange facilitates real-time trading of benchmark spot contracts and single project listings within a unified trading interface. This structure allows users to trade efficiently and discover price differences between benchmarks and individual projects. With the addition of BeZero Carbon’s ratings, the Exchange now provides an additional metric to assess project integrity risks, supporting more nuanced trading decisions.
These evidence-based ratings not only assist investors in evaluating the impact of their investments but also guide capital towards higher-quality climate projects. By strengthening trust in carbon credits as credible tools for climate action, ratings help align credit prices with their environmental effectiveness. On average, each rating tier in BeZero Carbon’s system adds a premium of around 30% to a credit’s price, reflecting the perceived quality and reliability of the credit.
Tommy Ricketts, CEO and co-founder of BeZero Carbon said, “Singapore is leading the way on climate action from both businesses and government, so we’re delighted to bring our expertise to Climate Impact X’s platform and cement our ambition for growth in the region’s carbon markets. It’s through partnerships such as these that ratings have quickly become critical infrastructure for the expansion of carbon markets on a global scale, enabling the effective allocation of capital towards high-quality projects that protect our planet and future.”
Ellery Sutanto, Head of Exchange at Climate Impact X said, “Scaling carbon markets requires ecosystem-wide collaboration to drive innovation and growth. By bringing BeZero Carbon’s ratings to CIX Exchange, we are further enhancing our platform’s capabilities, equipping market participants with even more data to align their trading and investment strategies with their risk appetite. This partnership not only reinforces CIX’s commitment to fostering a more transparent and efficient carbon market, but also demonstrates our dedication to providing our customers with seamless access to the insights they need to make informed decisions.”
