- MSCI’s new ratings assess over 4,000 carbon credit projects, focusing on integrity and risk.
- Projects are evaluated on emissions impact, legal, ethical, and environmental criteria.
- The ratings aim to boost investor confidence in the global carbon credit market.
MSCI Inc. has launched MSCI Carbon Project Ratings, the first tool to assess the integrity of over 4,000 carbon credit projects. This marks a significant step forward in setting new standards for transparency and reliability in the global carbon market.
“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,” said Guy Turner, Head of MSCI Carbon Markets.
MSCI’s ratings help buyers, investors, and developers navigate the carbon credit market by evaluating projects on a range of factors, including:
- Emissions impact: How effective is the project in reducing emissions?
- Legal and ethical risks: Does the project pose risks like fraud or financial crime?
- Social and environmental impact: How does the project affect communities and ecosystems?
“MSCI Carbon Project Ratings give clients the confidence to stake their strategies, capital, and reputations on carbon credits,” added Turner. The goal is to provide an investment-grade, independent assessment that can guide decisions and reduce risks.
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Each project receives a rating from AAA to CCC, with top-rated projects demonstrating high emissions impact and strong adherence to ethical standards. This transparency is designed to help investors compare projects across the entire carbon market and make more informed decisions.
MSCI’s latest offering integrates with its broader suite of Carbon Markets solutions, providing investors with data-driven insights to support their climate strategies.