Sylvera Carbon Credit Ratings Instructions
- August 20, 2024
- Sylvera
Table of Contents
Sylvera Carbon Credit Ratings
Product Information
Specifications:
- Sylvera Carbon Credit Ratings
- Assesses carbon projects’ claims of avoiding or removing one metric ton of carbon dioxide (tCO2) or other greenhouse gases (GHGs)
- Rating Categories: AAA-D
Product Usage Instructions
Sylvera Ratings Explained:
Sylvera ratings are crucial in building confidence in carbon markets.
Similar to S&P and Moody’s ratings in debt markets, Sylvera ratings assess the
likelihood that carbon projects have effectively reduced carbon emissions.
Complete Ratings:
Complete ratings are issued when all key data required for assessment is
available. They include ratings for carbon, additionality, permanence, and co-
benefits.
Provisional Ratings:
Provisional ratings are given when key data is missing, incorrect, or pending
verification. These ratings provide an initial assessment based on available
information, with the possibility of reassessment upon receiving additional
data.
Sylvera Rating Categories:
Sylvera categorizes projects into Tier 1, Tier 2, and Tier 3 based on the
level of risk associated with the accuracy of the project’s claims.
FAQ
-
Q: What do the different sub-scores in a Sylvera rating represent?
A: The sub-scores for carbon, additionality, permanence, and co-benefits provide insights into specific aspects of a carbon project’s performance. -
Q: How often are Sylvera ratings updated?
A: Sylvera reassesses projects and updates ratings when new data becomes available to ensure accurate evaluations. -
Q: How can I access the assets related to a specific project’s rating?
A: Assets related to a project’s rating can be downloaded from the provided link on the Sylvera platform.
Sylvera Carbon Credit Ratings Explained
A guide to Sylvera’s Carbon Credit Ratings
What S &P and Moody’s ratings are to debt markets, Sylvera ratings are to
carbon markets.
The Sylvera rating assesses the likelihood that credits issued by a carbon
project have delivered on their claims of avoiding or removing one metric ton
of carbon dioxide (tCO2) or other
greenhouse gases (GHGs). For each project, a rating is derived from the
holistic analysis of: measurements of the project’s carbon impact and how
accurately this is reported; its additionality — that is, whether the carbon
removal would have happened anyway, without the sale of the credits; and its
permanence — whether the emissions savings from the project will last over the
period claimed, typically 100 years. We also evaluate the co-benefits the
project brings to local communities and the environment. These core pillars
underpin every rating regardless of the project type.
Sylvera Ratings
Each project we rate receives a discrete letter rating (AAA-D) with sub-scores
for carbon, additionality, permanence and co-benefits, in addition to an in-
depth report.
Complete Ratings
Sylvera issues a complete rating when we have access to all the key data
(ranging from earth observation data to monitoring reports provided by project
developers and registries) required to rigorously assess a project according
to our proprietary, bottom-up framework.
Provisional Ratings
When key data required to fully evaluate a project is missing, incorrect or
the project is pending verification. Sylvera issues a provisional rating
denoted by a p- prefix in text. This represents our best estimate of the
project s quality considering the existing uncertainties. The provisional
ratings framework provides an assessment of the carbon credits based on the
best information available to date and considering the risk and probable
impact of the missing information. When new data is issued and if it satisfies
all our criteria for rigorous analysis, Sylvera will reassess the project and
issue a complete Sylvera rating.
Sylvera Rating Categories
Sylvera Rating Categories are a top-level view of the claims of carbon projects.
Complete Ratings
Complete ratings are mapped to a category.
- Tier 1 indicates that there is little risk that the claims of a project are overstated.
- Tier 2 indicates that the claims may be overstated and that buyers should analyze the project in detail while taking the carbon credits costs into consideration when making a purchase decision.
- Tier 3 indicates that it is very likely that the claims of a project are inaccurate.
Provisional Ratings
Provisional ratings are mapped to a provisional category. A project may be
provisional primarily because of data disclosures or technical limitations. A
provisional rating represents our best estimate of the project’s quality
considering the existing uncertainties.
- Ti er 1 indicates that there is little risk that the claims of a project are overstated based on data that is available.
- Tier 2 indicates that the claims may be overstated and that buyers should analyze the project in detail while taking the risks into consideration when making a purchase decision based on data that is available
- Tier 3 indicates that it is very likely that the claims of a project are overstated based on data that is available.
When new data is issued and when it satisfies all our criteria for rigorous analysis, we will reassess the project and issue a complete Sylvera rating.
Co-benefits
Co-benefits scores represent additional impacts of the project on biodiversity
and local community benefits to both local communities and environment. As
such we exclude the Co-benefits score from the overall project’s rating. This
is because the primary function of a Sylvera rating is to assess the
likelihood that the claimed GHGs have been avoided or removed. It also
prevents a high co-benefits score from inflating the Sylvera rating for a
project that is underperforming from the perspective of avoiding or removing
GHGs
Indicates exceptional progression of targeted SDGs, as well as extraordinary
species richness and high quality activities to reduce pressure on
biodiversity.
Example: The project implements a broad range of SDG activities with
extensive reach in the community, operates in a biodiversity hotspot and
successfully reduces pressures on the ecosystem.
Indicates strong progression of targeted SDGs, as well as high species
richness and quality activities to reduce pressure on biodiversity
Indicates average progression of targeted SDGs, as well as average species
richness and adequate activities to reduce pressure on biodiversity.
Example: The project implements SDG activities with moderate reach in the
community, has average species richness, and takes acceptable action to reduce
pressures on biodiversity.
Indicates narrow progression of targeted SDGs, or low species richness and
limited activities to reduce pressure on biodiversity
Indicates very limited progression of targeted SDGs, as well as very low
species richness and deficient activities to reduce pressure on biodiversity.
Example: The project implements limited SDG activities with limited reach
in the community, while not taking meaningful action to reduce pressures on
biodiversity or its species diversity is low and possibly under low threat.
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