The Carbon Cockpit Scoring Framework
Feb 22, 2024
Thank you for your ambition to lead the sustainable transition and for your interest in our Carbon Cockpit!
This is a short explanation of our scoring framework and methodology. We are generating three scores: Trust Score, Value Score and Guideline Fit Score.
Trust Score
Our trust score has two components: a base component and additional score modifiers.
Base component
The base component of the trust score is derived from the CCQI framework. Founded by the Environmental Defense Fund, World Wildlife Fund (WWF-US) and Oeko-Institut, the Carbon Credit Quality Initiative (CCQI) developed a transparent framework to assess the quality of carbon credits.
With this CCQI framework, we generate scores across the entire voluntary carbon market by assessing registry, project type, host country, and methodology across seven dimensions.
Trust dimensions:
→ Robust determination of the GHG emission impact (Additionality)
→ Avoiding double counting
→ Addressing non-permanence
→ Facilitating transition towards net zero emissions
→ Strong institutional arrangements and processes
→ Environmental and social impacts
→ Host country ambition (not always included)
These seven dimensions are rated on a scale from 1-5 either by CCQI themselves, or by an independent panel of carbon market experts that we have assembled. There are criteria and sub-criteria within each dimension, and more can be read about this here.
We calculate a weighted average of these scores into an overall score for each project and convert this into a percentage for easy understandability and comparison.
Additional score modifiers
Layered on top of the base component of each trust score are additional score modifiers:
→ Credit Completion Factor (measures the ratio of issued credits to planned credits)
→ Third-party ratings (BeZero, Sylvera, etc)
→ CCP eligibility probability (how likely the project is to get CCP accreditation)
These modifiers, where they are available, will shift the overall score up or down for the given project. They are updated on a weekly basis, accurately tracking the performance of a project over time.
Value Score
We analysed the relationship between trust and price for each subtype within the voluntary carbon market. The value score indicates how far above or below that project’s price is from the expected value line through all projects of that subtype.
Example: Assume we have a project in the afforestation/reforestation subtype, with a trust score of 65. Based on the calculated value line, the expected price is $12.00. However, the actual price for the given project is $14.00, which means that it sits above the value line, indicating that it is expensive relative to its peers. Therefore its value score will be low.
Guideline Fit Score
We make it possible for you to set your own guidelines on the platform. This includes the following factors:
→ Target price
→ Host country
→ Registry
→ Avoidance vs Removal
→ Type & Subtype
→ Methodology
→ Available vintages
Once these guideline factors have been entered, the platform calculates a guideline fit score for every project in the database. These scores indicate the degree to which each project fits your portfolio guidelines.