Carbon Ratings
Overview
Carbon Ratings are an important building block in the determination of pricing recommendations. Carbon Ratings measure the overall quality and likely performance of an emission reduction project. All factors that are likely to influence the projects capacity to generate CERs (or other units) are considered.
It is important to mention that there is no recipe or formula in rating assignment. If there was anyone could obtain a mechanical rating through data analysis. The reality is that ratings do not strictly measure a probability of delivery, and they certainly would not do so on a linear basis. Therefore the various rating levels should reflect an ordinal approach rather than a cardinal approach: the project with a higher rating has a better probability to deliver than the project with a lower rating.
Rating experts first rank a sufficiently large number of projects, based on their delivery risk, on the strength of a "memory database", made of what the experts have seen in the past about the degree of success or failure of hundreds of similar projects. Subsequently, all other projects receive ratings based on the ordinal approach, which of course apply also to the periodic review of existing ratings.
CIS has the skills needed to gauge delivery risk in all its components, even in the face of limited or unreliable information. We rely on in-house risk management tools that are based on methods used by rating agencies, in addition to technical and CDM specific input from CMC Group team of engineers and CDM methodology experts.
It is important to mention that there is no recipe or formula in rating assignment. If there was anyone could obtain a mechanical rating through data analysis. The reality is that ratings do not strictly measure a probability of delivery, and they certainly would not do so on a linear basis. Therefore the various rating levels should reflect an ordinal approach rather than a cardinal approach: the project with a higher rating has a better probability to deliver than the project with a lower rating.
Rating experts first rank a sufficiently large number of projects, based on their delivery risk, on the strength of a "memory database", made of what the experts have seen in the past about the degree of success or failure of hundreds of similar projects. Subsequently, all other projects receive ratings based on the ordinal approach, which of course apply also to the periodic review of existing ratings.
CIS has the skills needed to gauge delivery risk in all its components, even in the face of limited or unreliable information. We rely on in-house risk management tools that are based on methods used by rating agencies, in addition to technical and CDM specific input from CMC Group team of engineers and CDM methodology experts.
