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Rated Carbon Credits

The Carbon Rating Agency (CRA) provide exchanges with strategic advice on climate change policy and strategic business opportunities in carbon markets. CRA combines its strengths of risk assessment, risk evaluation and ratings with its ability to introduce novel and relevant tradable products to enhance liquidity in exchanges.

CRA being fundamentally a neutral partner not constraint by any relationships or by market positioning exposure, can greatly assist launch credible instruments, build markets based on rated carbon assets (Rated Carbon Credits-RCCs), globally for trading on exchanges. RCCs constitutes a new asset class to be sustained by leading transaction providers in the development of a mature carbon market. As the culmination of CRA’s efforts in rating projects is the transaction of RCCs and associated instruments on exchanges, it naturally contributes to the transparency and market standards. CRA is thus centred on helping provide the critical tools to create a potentially large and successful alternative asset class.

CRA has a significant pool of CDM and Voluntary Market with graded, rated and published projects of different sectors and geographies. The pool of rated projects has created a diversified portfolio of RCCs which offers an objective differentiation in comparison to other carbon portfolios: the expert project evaluation undertaken by the CRA.

CRA’s ratings also results to create Exchange Traded Funds (ETFs), indices and other means to attract buyers, sellers and hedgers.

Product Deliverables

The CRA undertakes the risk evaluation of the project using its proprietary methodology. This includes an assessment of the projects’ fundamentals under five main risk categories: Project Concept, Project Context, Project Participants, Project Implementation and Framework.

The quality assessment of the credit is expressed in a rating score (AAA – D) which represents the likelihood of credits being delivered in line with the project design document (PDD) schedule. (Please find below the Ratings Scale and Definitions).

With the consent of project proponents (a contract is signed between the parties – the Project Proponent, an Exchange, and CRA), the Rated Carbon Credits are made available to the transaction provider.

CRA also offers its services for developing and trading other products linked to RCCs in exchanges.