Paris-based carbon finance firm ClimeFi has launched its Analyst Rating, a novel evaluation system aimed at providing forward-looking insights into carbon dioxide removal projects, the company announced on Friday.
The new rating tool, modeled after financial sector analysis, offers a dynamic assessment of CDR initiatives, setting it apart from traditional carbon credit ratings, which typically focus on static evaluations of carbon attributes such as additionality and permanence.
“As the CDR market continues to evolve, there is a growing need for sophisticated mechanisms to help guide participants,” ClimeFi said in a statement. “The Analyst Rating provides an independent, forward-looking perspective to inform portfolio management decisions.”
Key Factors in the Analyst Rating
Unlike conventional carbon credit ratings, which assess the fundamental quality of carbon credits, ClimeFi’s Analyst Rating evaluates projects based on factors such as delivery expectations, scalability potential, regulatory developments, and alignment with market trends.
The assessments will be regularly updated through quarterly supplier engagement and project performance data analysis, offering buyers critical insights into a project’s long-term viability.
“In financial markets, institutions use analyst ratings to guide investment decisions. We are bringing that same approach to CDR,” ClimeFi stated.
Enhancing Market Efficiency
The move comes as the CDR market matures into a key tool for climate action. By providing a comprehensive picture of risks and opportunities, ClimeFi aims to streamline the CDR procurement process and enhance market efficiency.
In addition to its new Analyst Rating, ClimeFi offers due diligence, contracting, portfolio monitoring, and project sourcing services to support carbon credit buyers.
