Introduction
 
The Carbon Rating Agency provides market-leading analysis of the performance prospects of Clean Development Mechanism (CDM) and Joint Implementation (JI) projects, portfolios or carbon-linked instruments. The risk analysis is based on a combination of expert evaluation; a standardised and transparent risk analysis tool; and the input from an expert independent Rating committee.
 
All non-issued CERs/ERUs pose delivery risk. Carbon assets not only face the risk of normal project delivery – country, financial and performance uncertainties – but are also subject to a high degree of regulatory and measurement risk. Carbon methodologies, compliance with local and international authorities, and monitoring of carbon emissions provide additional risks to the delivery of forward contracts for emissions.
 
Carbon Rating Agency Ratings are designed to enhance market transparency and transactional efficiency. Ratings are provided to the market consequent to either a market initiated (MI) exercise or result from a request from the credit developer/originator (mandated).