BeZero Carbon publishes industry-first regenerative agriculture project rating
12th June 2024
BeZero Carbon has just published the industry’s first-ever rating of a regenerative agriculture project.
The project, based in North America, has been assigned a BBB rating, indicating that it has a moderate likelihood of achieving a tonne of CO2e removed or avoided.
This is a significant advancement in the evaluation of soil-related agricultural practices within the carbon market.
Promising solution
BeZero Carbon explained that global food production accounts for approximately 26% of all greenhouse gas emissions, therefore, the need to mitigate emissions from this sector is urgent.
Regenerative agriculture offers a promising solution by not only reducing emissions associated with food production, but also by enhancing soil carbon sequestration for long-term sustainability.
The company added that its ratings help scale nascent sectors in carbon markets by providing valuable insights into the strengths and risks of projects for investors and buyers who channel capital into these climate solutions.
Independent, third-party ratings
The release of this first-of-its-kind rating marks a significant turning point in the soil-related agricultural practices sub-sector.
While previous projects primarily focused on methane emissions reduction, the future is poised for regenerative agriculture initiatives to take centre stage, with numerous projects anticipated to enter the market in the coming years.
Independent, third-party ratings, provided by BeZero Carbon, boost investor confidence in the sector, helping players understand the likelihood that the regenerative agriculture projects they invest in will deliver on their climate claims.
Investor confidence, in turn, translates into mobilised finance for effective solutions that need to be scaled to meet climate targets.
Teresa Hartmann, chief ratings officer at BeZero Carbon, said: “We’re delighted to have provided the industry’s first-ever rating of a regenerative agricultural sub-sector, alongside our 430+ ratings for projects across all sub-sectors.
“This sector is crucial to mitigate emissions from global food productions, and the independent, risk-based ratings help investors have the confidence to channel capital into projects that can deliver the greatest environmental impact.”
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