Many people have asked us why Calyx Global ratings differ from those of other rating agencies. We have written this blog on “Rating Differences” to help our subscribers understand several key underlying reasons why ratings may differ among agencies. While all ratings agencies look at risks to carbon projects, there are a few key differences in our approach:

1. Bucketing risks: How a ratings agency categorizes, then scores, various risks can result in differing overall ratings. For example, we look at a credit’s risk of non-additionality and over-crediting separately, meaning a high risk in either area can lead to a low overall rating. At least one other rating agency groups additionality with several elements of over-crediting (such as baseline risk), which can impact a credit’s overall rating.