As the voluntary carbon market undergoes an intense period of scrutiny, buyers increasingly use independent evaluations of credits as a filter or standard for purchase. For project developers behind high integrity projects, that is an opportunity to distinguish themselves. We spoke with David Kitt, Chief Technical Officer at DelAgua Group about this reality. DelAgua is a developer of cookstoves credits. They produced the first credits Calyx Global rated under the VM0050 methodology, which were rated in Calyx’s Tier 1 (AAA, AA, or A) for GHG integrity. 

Quality as a defining characteristic

As corporate buyers increasingly focus on quality, independent credit ratings are actively being written into procurement contracts as a hard minimum threshold.

“Higher ratings are leading to higher prices. We’re seeing it in tenders that are coming out that are saying, ‘This is your minimum threshold,’” David explains. “Achieving an AA rating has given us a threshold into a couple of tenders that previously we weren't able to bid into. We’re seeing a direct correlation.”

Third party quality assessments help buyers benchmark the GHG integrity of credits, as well as consider potential social risks and benefits.

“Rating agencies are now an incredibly important part of the ecosystem, and it's adding another layer of confidence for buyers,” David said.

What’s in a rating? 

Calyx Global GHG ratings are an assessment of the risk that credits do not represent a unique, permanent, tonne of removed or reduced CO₂e. Ratings range from AAA to D and reflect the overall risk that credits are not achieving the emission reductions or removals that are claimed based on four factors: additionality, quantification, permanence, and over-crediting. Calyx also separately evaluates projects for environmental and social risks and contributions to Sustainable Development Goals.

When conducting a rating, Calyx relies on publicly available information across the registry, project developer website and other public sources, in the interest of transparency and accountability. Credits are selected for rating based on demand, data availability, available inventory and project technology/methods, but Calyx does not accept payment from project developers to conduct ratings.

“The rating process was super straightforward and easy. But it still feels very separate. That separation of developer to independent assessment of quality from Calyx Global is very pronounced.”

After DelAgua’s rating was published, Calyx Global notified their team and shared full access to the rating details, allowing them to review and understand the analysis.

Why independence matters 

The commercial value of these ratings to integrity-focused buyers rests on one thing: confidence that each rating reflects an objective, rigorous assessment of the project - not a commercial relationship with the project being rated. 

For buyers, independent third party ratings provide an additional layer of confidence when comparing projects and making procurement decisions, particularly if ratings are grounded in transparent analysis and public information. 

Interested in learning how independent, rigorous carbon ratings can bring clarity to your carbon procurement strategy? Request a demo of the Calyx Global platform today.