MSCI has launched their Carbon Project Ratings to enable users of carbon credits to assess the quality and integrity of carbon projects.

MSCI Carbon Project Ratings assess over 4,000 projects in the global carbon credit market and consider a project’s impact on the climate, environment and society, as well as legal and ethical risks, including financial crime, fraud, and sanctions.

Each individual project is assessed against six criteria and over 50 sub-criteria broadly categorized under emissions impact and implementation integrity. The rating is a composite of these two categories and based on a seven-point letter rating scale from AAA to CCC. Projects rated AAA have both a high likelihood of achieving a 1 tonne emissions impact per credit and being implemented in a way that supports positive social and/or environmental outcomes, while upholding legal and ethical standards.

Guy Turner, Head of MSCI Carbon Markets, said, “Carbon markets are critical to accelerating decarbonization and meeting net-zero goals, but only 5% of projects on the market are considered to be of very high integrity. Lack of confidence in the quality and integrity of projects is causing some buyers, investors and developers to hesitate.”

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