Offset Rating Service Launched
IDEAcarbon, a subsidiary of IDEAglobal, of which Economist Nicholas Stern serves as vice-chairman, created the Carbon Rating Agency. Launched at the London Stock Exchange, the service will offer a rating based on whether a carbon-offset project achieved its projected emissions reductions on time and created an economic or social development benefit.
A new service was unveiled Wednesday that is designed to measure the performance of carbon offsets in the voluntary, Clean Development Mechanism and Joint Implementation trading markets.
IDEAcarbon, a subsidiary of IDEAglobal, of which Economist Nicholas Stern serves as vice-chairman, created the Carbon Rating Agency. Launched at the London Stock Exchange, the service will offer a rating based on whether a carbon-offset project achieved its projected emissions reductions on time and created an economic or social development benefit.
The ratings will span from the highest quality, or AAA, to the riskiest, or C and D.
"Our analysis shows that the concern of many investors is justified -- carbon projects are risky and until recently these risks have been underestimated,” Ian Johnson, chairman of IDEAcarbon and former vice president for sustainable development at the World Bank, told Reuters.
The launch coincided with a report from the agency finding that the vast majority of carbon offset projects fail to live up to their goals projected at the design stage, with most delivering slightly more than 70 percent of reductions expected.
IDEAcarbon, a subsidiary of IDEAglobal, of which Economist Nicholas Stern serves as vice-chairman, created the Carbon Rating Agency. Launched at the London Stock Exchange, the service will offer a rating based on whether a carbon-offset project achieved its projected emissions reductions on time and created an economic or social development benefit.
The ratings will span from the highest quality, or AAA, to the riskiest, or C and D.
"Our analysis shows that the concern of many investors is justified -- carbon projects are risky and until recently these risks have been underestimated,” Ian Johnson, chairman of IDEAcarbon and former vice president for sustainable development at the World Bank, told Reuters.
The launch coincided with a report from the agency finding that the vast majority of carbon offset projects fail to live up to their goals projected at the design stage, with most delivering slightly more than 70 percent of reductions expected.
