BeZero Carbon and Xpansiv have expanded their partnership to improve transparency and trust in carbon markets. This partnership aims to help investors, businesses, and governments make smarter choices when buying and selling carbon credits. It will also help support projects that make a real difference in reducing greenhouse gas emissions.
Tommy Ricketts, CEO and Co-founder of BeZero Carbon, remarked:
“This partnership will further expand access to our ratings, helping even more market participants make informed climate decisions. Ratings are essential to the functioning of carbon markets, and already some of the biggest businesses rely on our analysis for the clarity they need.”
Carbon Credits 101: The Currency of Climate Action
Carbon credits are permits that allow companies to emit a certain amount of carbon dioxide (CO₂). Each credit usually represents one ton of CO₂ that has been either avoided or removed from the atmosphere. These credits are part of a broader effort to slow down climate change by putting a price on carbon emissions.
Carbon credits are bought and sold in two main types of markets:
- Voluntary carbon markets: where companies or individuals buy credits to offset their emissions and show climate responsibility.
- Compliance carbon markets: where governments require companies to meet certain emission targets and may allow them to use credits to meet those goals.
As more companies make climate pledges, the demand for high-quality carbon credits is growing. However, to trust that credits are effective, people need to understand how much impact a credit really has. That’s where ratings come in.
BeZero Carbon’s Role: Measuring Credit Credibility
BeZero Carbon is a global company based in London. The company specializes in rating carbon credits to show how likely a project is to reduce or remove carbon dioxide from the atmosphere.
Their rating system uses a scale from AAA (the highest quality) to D (the lowest quality). A higher rating means the carbon credit is more likely to deliver its promised environmental benefit.
To assign these ratings, BeZero considers many factors:
- Additionality: Would the carbon savings still happen if the project didn’t exist?
- Permanence: Will the CO₂ stay out of the atmosphere for a long time?
- Leakage: Does the project cause emissions to go up in another location?
- Verification: Is there enough evidence and monitoring to prove the carbon savings?
BeZero uses science, data, and expert analysis to make these assessments. Their goal is to bring more trust and clarity to the carbon market.
What Does Xpansiv Do? The Digital Backbone of Carbon Trading
Xpansiv is a U.S.-based company that provides digital infrastructure for environmental markets. This includes systems for trading carbon credits and managing data. Xpansiv runs the CBL (Carbon Blockchain Listing), which is the world’s largest spot exchange for carbon credits. It allows buyers and sellers to trade carbon credits directly, with real-time data.
Xpansiv also operates Xpansiv Connect, a portfolio management tool used by investors and project developers to manage their carbon credit holdings.
The company also supports other exchanges. One is the IATA Aviation Carbon Exchange, which helps airlines manage emissions. Another is the JSE Ventures Carbon Market in South Africa.
What’s New in This Expanded Partnership?
BeZero and Xpansiv have been working together for nearly three years. In the past, BeZero’s carbon credit ratings were already available in Xpansiv’s daily pricing reports and historical data sets. This helped market participants understand how prices related to quality.
Now, their partnership has grown to include more features, including:
- Live Ratings on CBL. BeZero’s headline ratings will now appear directly on the CBL exchange. This allows traders to view credit quality in real time before buying or selling.
- Integration with Xpansiv Connect. Portfolio managers can now see BeZero ratings in their dashboards and use them to manage risk.
- Expanded Reach. BeZero ratings will also appear on partner exchanges like JSE Ventures and the Aviation Carbon Exchange.
- Third-Party Access. Other exchanges using Xpansiv’s trading technology can offer BeZero’s ratings as an add-on.
Soon, Xpansiv’s pricing and market data will join BeZero’s Carbon Markets platform. This addition will give users better tools to assess projects.
Boosting Buyers’ Confidence, Avoiding Bad Investments
As the world tries to cut carbon emissions, carbon markets are playing a bigger role. According to a report by Ecosystem Marketplace, over $2 billion worth of credits were traded in the voluntary market in 2023 alone. However, concerns about quality and transparency have caused hesitation among buyers.
The chart below shows a drop in market activity since 2021, when criticism of the system began. Both the number of carbon credits used (retired) and those created (issued) have declined.
Ratings systems like BeZero’s aim to fix this problem by giving buyers confidence in what they are purchasing. Sharing these ratings on platforms like Xpansiv lets more people join climate action. It also helps them steer clear of bad investments.
Carbon credits can play a positive role in slowing down climate change—but only if they actually deliver on their promises. That’s why this kind of partnership matters.
This expanded partnership is expected to have major benefits for the carbon market.
Using carbon ratings helps investors and buyers make better choices. This way, they can select higher-quality projects, which are more likely to provide real environmental benefits. More data makes the market clearer and more reliable. This boosts overall transparency.
A common rating system helps set clearer standards. It reduces confusion and creates a shared understanding of project quality. As a result, capital can be directed toward the projects that have the greatest impact, making the market more efficient and effective.
Nathan Rockliff, Chief Strategy Officer at Xpansiv, noted:
“Providing BeZero’s headline ratings will be a natural extension of our aggregated market view. It’s another step toward transparency and trust for carbon market participants around the world…”
Raising the Bar for Carbon Markets
The expanded partnership between BeZero Carbon and Xpansiv could help set a new standard for how carbon credits are traded and evaluated. It brings together strong data, technology, and science to help make carbon markets more effective.
With more companies and countries pledging to reach net-zero emissions, the demand for high-quality carbon credits is only going to grow. Partnerships like this help create the tools and trust for a low-carbon future.