Many people have asked us why our ratings differ from those of other rating agencies. This is the second installation of our series on “Rating Differences” to help our subscribers understand the underlying reasons why ratings may differ. Click here to read the first installation: Categorization of Risks.

Many aspects go into determining whether a carbon credit is permanent. In other words, whether there is a risk of the underlying emission reduction, or removal, being reversed. When assessing the risk of non-permanence, we consider many aspects, including the social and environmental context, project design and project management. Our competitors do the same. Where we fundamentally differ is in the grounding assumptions about what permanence is and how to guarantee it.