Why Would Carbon Credit Buyers Use Estimated Ratings?

We’ve just launched our Estimated Ratings - our latest and industry-leading feature to help buyers identify high-potential carbon projects quickly.

So, we sat down with our VP Ratings, Jess Roberts, to answer a few questions around how Estimated Ratings work, and why they could be a game-changer for carbon credit buyers.

‍

Why has Sylvera launched Estimated Ratings?

Sylvera has always prioritized accuracy and data to build trust in the carbon credit market. Our initial mission was to ensure that our Ratings are reliable and credible.

Over the years we’ve invested significantly in our data and rating teams - right from the start - focusing on producing trusted Ratings. While this commitment ensures the accuracy of our Ratings, it doesn’t allow the scale across the thousands of projects that buyers are considering.

So, with Estimated Ratings, we’re now investing in technology and processes that allow us to apply our insights at a larger scale with ever-increasing data transparency. In short: we’re transitioning from providing information on hundreds of projects to thousands, giving buyers far greater breadth when it comes to project insights and enabling buyers to triage projects effectively.

‍

How do Estimated Ratings work?

We apply the accuracy that the market expects from Sylvera - at scale. 

We’re analyzing key data points and risk drivers - the same as those underpinning our full Ratings - and automating elements of the analytical process that don’t need expert intervention. 

Our Estimated Ratings benefit from being powered by the comprehensive datasets we’ve built for our Ratings, and every project is looked at by at least two of our trained analysts, but we remain transparent about what further analysis is necessary. If you’re considering investing in multiple projects, you can use Estimated Ratings to identify which ones are worth a deeper look. 

‍

So, why would carbon credit buyers use Estimated Ratings?

For example, if buyers are looking at 100 projects but only interested in engaging with a few, they can access Estimated Ratings on all 100. This helps them identify which projects are most likely to align with their quality and risk guardrails. They might narrow this down to a handful of projects which are worth pursuing further for detailed due diligence - where they’d apply our full Ratings. 

‍

It allows buyers to:

Triage at scale, so buyers can assess thousands of carbon projects quickly using trusted methodologies—helping you filter and prioritize efficiently.

Save time and resources, focusing due diligence on the most promising projects, reducing the cost and effort of evaluating every option.

Have data-backed confidence and transparency, with a reliable quality signal and clear rating ranges and robust supporting data, ensuring informed decision-making.

‍

Is accuracy compromised with Estimated Ratings?

No, we’re not compromising on accuracy. Our analysts dedicate the same amount of time to Estimated Ratings as they do to our comprehensive screenings. Time saved is gained from automation of tasks, not reduction of project analysis.

Instead of providing a single Rating, we offer a Rating range, alongside all layers of subcomponent scores and input data, to reflect the confidence level of the assessment and help users understand the source of any potential investment risks.

‍

Estimated Ratings achieve an accuracy rate of 80%, which means they are reliable and effective for triage. They have been back-tested and shown to correlate with our Ratings 80% of the time. An accuracy of 100% is not to be expected, as there is project nuance and context pertaining to the credit quality that can only be achieved during the deeper due diligence process. 

Where there isn’t alignment with Ratings, our Estimated Ratings tend to be conservative, so you’ll be unlikely to be spending time looking at a project with an Estimated Rating that's too high.

‍

What does the range of Estimated Ratings look like?

The average range for these Ratings typically spans two rating grades (e.g. BB-C). This provides users with a perspective that acknowledges possible variations based on the available data, but remains narrow enough to be actionable.

‍

How many Estimated Ratings are there?

We currently have over 500 Estimated Ratings, with plans to reach 1,000 full ratings by the end of Q1 2025 and over 5,000 Estimated Ratings by the end of the year.

‍

How does Sylvera’s approach to Estimated Ratings compare to other providers?

Other platforms offer the raw data points without standardization or contextualization. 

But as our objective of Estimated Ratings is to enable buyers to make faster, informed decisions - we’ve designed Estimated Ratings to deliver these contextualized, standardized insights. 

It means we offer a more comprehensive analysis, helping users understand the significance of data and the “so what”, rather than merely presenting numbers. So, we don’t just provide the data but make it easy to understand and use.

‍

‍

Interested in seeing how Estimated Ratings can streamline your approach to carbon credit buying? 

Join our live demo webinar, or head over to our product info page to learn more.

‍