Introduction

In this analysis we compare Calyx Global, Sylvera and BeZero’s approaches to discounting. Discounting is the practice of retiring additional carbon credits in a portfolio to compensate for the risk an individual credit does not fully deliver on its claim of removing or avoiding one tonne of CO2e. The result is a risk-adjusted portfolio of credits that helps to improve offsetting claims while minimizing reputational risk. 

Carbon credit rating agencies, among other organizations, help companies calculate the risk that a credit is not achieving what it claims. Some organizations also provide carbon credit users with information on the “discounting” they can employ for specific carbon credits to improve the offset claims they wish to make. At a time when finding high-quality credits can be challenging, correcting, for example, over-crediting claims can immediately provide higher-quality supply and increase buyer and investor confidence. In this way, discounting benefits organizations across the voluntary carbon market.