Accelerating the Carbon Market: A Call for a Standardized Rating System for Removal and Avoidance Credits

whitepaper

Carbon emissions must be reduced, and without delay. While carbon reduction must be the primary focus, it will be impossible to reach net zero goals without considerable investment in carbon removal and avoidance activities. However, an inadequately structured market and an often confusing set of choices in carbon removal and avoidance credits has hindered the necessary investment in these activities from corporations, governments and other emitters.    

Kimmeridge believes it is time to create a standardized, global rating system for carbon credits, akin to the bond market, with a simple and transparent methodology that accurately quantifies additionality and durability – the two primary drivers of value in environmental integrity. 

Key Takeaways: 

• Carbon removals will prove essential in the race to net zero. 

• The cost of natural solutions is significantly lower than the cost of engineered solutions, making nature-based solutions the economically rational choice today. 

• The existing carbon market needs greater transparency, simplicity, and volume in order to effectively deliver the world’s net zero goals.