2024 YTD has seen a 50% drop in the proportion of carbon credits issued with the lowest rating on the Calyx Global rating scale vs the last three years. That could indicate that carbon buyers are getting savvier in their purchases, since many project developers don't issue credits until they have a buyer lined up. Ultimately, that demand signal for quality may drive up quality across the VCM. I'm looking forward to speaking with Donna Lee, Linda Rivera Macedo, and Cheryl Sansonetti about whether the initiatives to improve carbon credit quality are paying off, quality metrics beyond GHG integrity, and (a topic I think about a whole lot) what role media can play in the carbon markets. Come join our conversation on Wednesday! 🔗 to the event in the comments Image and data from Calyx Global report, The State of Quality in the VCM. 🔗 in comments ---- Note: Issuance year is not the same as vintage year. A carbon credit vintage is the year the reduction/avoidance/removal happened; the issuance year is when the developer brought that particular credit to market, after having it verified by an auditor. There can be a several year lag between vintage and issuance year. The Calyx report has some really interesting data showing no clear correlation thus far between vintage year and carbon credit quality.
Dave Folk
3w
Given D rated credits doubled and it seems the proportion of credits rated D and F are the same, along with a shrinking of A and B credits it would seem there could be something else at play. One possibility is a shift to mediocrity. There’s much risk in something being the worst or unimpeachable but far less if it’s C or D rated.
Looking forward to a great discussion, Margaret!
You've got a busy week!
Director, Carbon at GreenBiz
3wLink to join the webinar about the state of quality in the VCM: https://info.calyxglobal.com/webinar_vcm-quality-trends-2024 Link to the recent report: https://calyxglobal.com/resource-post?q=20