For years, leaders in our Climate Solutions business have emphasized the importance of developing high-integrity forest carbon projects to support the growth and credibility of the voluntary carbon market. This market is an essential mechanism for organizations pursuing net-zero strategies because it enables the purchase of credits to offset unavoidable or difficult-to-reduce emissions.
But what makes for a high-integrity project?
At ¹ú²ú×ÔÅÄ, our Carbon Credit Principles outline our fundamental approach to developing carbon projects and define high-integrity projects as those meeting the following three criteria. They must: 1) represent real, measurable change; 2) ensure durable climate benefits; and 3) demonstrate transparency. Our Forest Carbon team works diligently to ensure the projects we develop meet these high standards, and independent third parties then validate our methodology, measurements and governance.
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Credits generated through our projects sometimes undergo further scrutiny from credit ratings agencies. Recently, the largest of these agencies, — a global firm headquartered in London — evaluated our first three forest carbon projects in the U.S. South and rated each of them among the best in their class.
Easthaven, a project spanning more than 33,000 acres in southwest Mississippi, was assigned a BeZero Carbon Rating of AA, while Rosetta, encompassing more than 31,000 acres, also in southwest Mississippi, and Razorback, covering nearly 57,000 acres in southeast Arkansas, both earned BeZero Carbon Ratings of A. All three of these projects are Improved Forest Management projects registered through ACR, our primary carbon registry. IFM projects increase the amount of carbon stored in the forest above business-as-usual scenarios through practices such as extending harvest rotations and no-harvest buffers around streams and wetlands.
A BeZero Carbon Rating represents BeZero’s opinion on the likelihood of a carbon credit achieving a ton of CO2e avoided or removed. The BeZero Carbon Rating is assigned on an eight-point scale ranging from AAA, representing the highest likelihood, to D, the lowest likelihood. In these latest ratings, Easthaven is one of only two IFM projects to be assigned a BeZero Carbon Rating of AA (“very high”) — no IFM project to date has received a AAA (“highest”) rating. Rosetta and Razorback, meanwhile, are among only five IFM projects to be assigned a BeZero Carbon Rating of A (“high”). Our first forest carbon project, Kibby Skinner, covering more than 47,000 acres in western Maine, also received an A rating and is among the latter group.
Most IFM projects evaluated by BeZero have been rated BBB (“moderate”) through D (“lowest”).
“The voluntary carbon market is highly dependent on trust, so ratings play an important role in simplifying the process for buyers,” says Alicia Robbins, vice president of Climate Solutions and Business Development. “We’ve been talking about project integrity and how credits from our projects are of the highest quality. These ratings provide independent market validation of that and are a really important step for us in building standing in the market.”
BeZero’s ratings include a comprehensive review of all project design documentation available through the registry, as well as deeper dives into the three core areas of additionality, carbon accounting and permanence — all strengths our Forest Carbon team has spent years developing with tools, technology and fieldwork.
Like bond ratings in financial markets, BeZero Carbon Ratings can change over time due to environmental factors or new information. But having four current projects with an A rating or better is a testament to the scientific rigor with which our Forest Carbon team has grown and developed our portfolio, Alicia says.
“We’re demonstrating consistency, project to project, that proves what we’ve been saying,” she says. “These ratings show the importance of trust, integrity and building solutions the right way in this space.”
