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Carbon Ratings Methodology

This document sets out how SYNE constructs, weights, scores, and governs a Carbon Rating for carbon credit projects, issuers, and carbon-intensity performance. It covers scope, data sources, the full criteria framework, grade assignment, governance, review cycle, and appeals.

Version 2.1 Effective July 2026 Next scheduled review: July 2027 Applies to: Carbon credit projects & issuers
80 criteria across 4 dimensions
AAA–D scale, shared across all SYNE products
Reviewed annually, or on a material trigger event
Independent Rating Committee sign-off
01 · Scope & Applicability

Who and what this methodology rates.

This methodology applies to carbon credit projects, carbon credit issuers, and carbon-intensity performance assessments, across voluntary and compliance carbon markets and any of SYNE's 71 licensed jurisdictions. It does not apply to corporate ESG performance, which falls under the ESG or Sustainability Ratings Methodology, or to suppliers, which fall under the Supplier Ratings Methodology.

A project becomes eligible for a Carbon Rating once it has a registered methodology with a recognised registry (such as Verra VCS or Gold Standard), or has submitted an equivalent feasibility and baseline package directly to SYNE for pre-issuance assessment. Ratings can be commissioned by the project developer or issuer, or requested by a prospective buyer or investor with the developer's cooperation.

At a glance

Applies to
Carbon credit projects, issuers & carbon-intensity assessments
Minimum eligibility
Registered registry methodology, or an equivalent feasibility & baseline package
Commissioned by
The project developer or issuer, or a prospective buyer with cooperation
Geographic scope
Any of SYNE's 71 licensed jurisdictions
Excludes
Corporate ESG performance and suppliers - see the respective methodologies
02 · Data Sources & Collection

Where the underlying evidence comes from.

Every Carbon Rating draws on registry documentation, independent geospatial verification, licensed market data, and independent third-party data, weighted toward independently verifiable evidence wherever possible.

Primary

Registry documentation

Project design documents, monitoring reports, and validation/verification (VVB) reports filed with the registry.

Primary

Geospatial & field verification

Satellite and remote-sensing analysis, cross-referenced with SYNE's Biomass Atlas, plus field verification data where available.

Third-party

Independent data providers

Data from accredited VVBs, satellite imagery providers, and standards bodies, sourced independently of the project developer.

Secondary

Licensed market & pricing data

Carbon pricing and trading data licensed through SYNE Data and Carbon Intelligence, used to contextualise market-wide performance.

03 · Carbon Market Principles

The core concepts every criterion is built on.

Before scoring a single criterion, every analyst applies the same four industry-standard concepts that underpin credible carbon accounting. These aren't SYNE-specific definitions - they're the same principles referenced in the GHG Protocol, IPCC guidance, and the ICVCM Core Carbon Principles.

Additionality

Would it have happened anyway?

Whether the emissions reduction or removal is genuinely caused by the project, and would not have occurred under a business-as-usual baseline.

Permanence

How long does it last?

How durable a reduction or removal is, and the reversal risk that stored carbon could later be released back into the atmosphere.

Leakage

Did it just move elsewhere?

Whether emissions reduced in one place are genuinely avoided, or simply displaced to a location outside the project boundary.

Double-counting

Is it claimed only once?

Ensuring the same tonne of avoided or removed carbon isn't claimed by more than one party, registry, or country's national inventory.

04 · Criteria Framework

80 weighted criteria across four dimensions.

Each criterion is scored on a normalised 0–100 basis by a lead analyst, using a documented scoring rubric aligned to GHG Protocol, IPCC guidance, and the ICVCM Core Carbon Principles, before dimension and composite scores are calculated.

24 Additionality & Baseline 20 Permanence & Reversal Risk 24 MRV & Data Integrity 12 Co-benefits & Safeguards 80 total, weighted into one rating
A
24Criteria

Additionality & Baseline

Whether the emissions reduction or removal is real, and beyond what would have happened anyway.

  • Baseline Scenario Construction
  • Regulatory & Financial Additionality Test
  • Leakage Risk Assessment
  • Double-Counting & Registry Cross-Checks
P
20Criteria

Permanence & Reversal Risk

How durable the emissions reduction or removal is, and what could reverse it.

  • Reversal Risk Assessment
  • Buffer Pool Contribution Adequacy
  • Monitoring Period Length
  • Legal Title & Land Tenure Security
M
24Criteria

MRV & Data Integrity

Measurement, reporting and verification quality - including satellite and field data.

  • Satellite & Remote Sensing Verification (Biomass Atlas)
  • Field Measurement Protocol Quality
  • Third-Party Validation & Verification (VVB)
  • Data Transparency & Traceability
C
12Criteria

Co-benefits & Safeguards

Biodiversity, community and social impact beyond the carbon claim itself.

  • Biodiversity & Ecosystem Co-benefits
  • Community Consent & Benefit-Sharing
  • Environmental & Social Safeguards
  • SDG Alignment
05 · Weighting & Scoring Methodology

How 80 individual scores become one number.

Each of the 80 criteria carries a base weight set by project-type materiality mapping, reviewed annually against evolving registry methodologies. Criterion scores are aggregated into a dimension score using the weighted average of that dimension's criteria, and dimension scores are then combined into the composite score using the dimension weights shown in Section 04.

Base weights

Project-type materiality mapping

Criterion weights are adjusted by project type - for example, permanence criteria carry more weight for a forestry project than for a renewable energy project.

Aggregation

Weighted average, not simple average

No criterion is dropped for missing data; a missing criterion is scored as zero unless a documented exemption applies, preventing silent grade inflation.

Floors

Non-compensatory floors

No project can reach AAA or AA without independently verified MRV data - a strong additionality claim on unverified data caps the composite score.

06 · Data Quality Adjustment

A strong score on unverified MRV data isn't a strong rating.

Every criterion score carries a parallel data quality flag - Assured, Disclosed, or Estimated - based on the strength of its underlying evidence. A composite score cannot reach the AAA or AA band unless at least 80% of its criteria carry an Assured or Disclosed data quality flag, and no more than 10% are flagged Estimated.

Assured

Independently verified

Backed by third-party VVB verification, satellite cross-checks, or an independently verifiable registry record.

Disclosed

Developer-disclosed, unassured

Reported directly by the project developer without independent assurance, but consistent with other available evidence.

Estimated

Modelled or inferred

Estimated using methodology defaults or regional proxies where direct monitoring data isn't yet available.

07 · Continuous Monitoring

What happens between scheduled review cycles.

A rating is not frozen for a full year between reviews. Continuous monitoring tracks satellite and registry signals that could affect a project's score in real time, feeding into the interim review triggers described in Section 11.

Real-time

Satellite & remote sensing alerts

New deforestation, fire, or land-use change signals are flagged as they're detected, not held until the next scheduled review.

Scheduled

Quarterly registry data refresh

Registry issuance, retirement, and monitoring report data refreshes at least quarterly.

Escalation

Threshold-based escalation

A monitoring signal that crosses a defined materiality threshold is escalated to the Rating Committee for an interim review decision.

08 · Grade Assignment & Rating Scale

How the composite score becomes a letter grade.

The composite score, after data quality adjustment, is mapped to the six-tier AAA–D scale shared across every SYNE product.

AAA
ExemplaryScore 90–100

Requires Assured data quality on at least 80% of criteria, per Section 06.

Minimal risk - investment-grade carbon asset.
AA
AdvancedScore 75–89

Requires Assured or Disclosed data quality on at least 80% of criteria.

Low risk - bankable carbon asset.
A
DevelopingScore 60–74

Material gaps identified in permanence or MRV, being actively addressed.

Medium risk - near investment-grade.
B
EmergingScore 45–59

Significant improvement needed in baseline, permanence or verification.

High risk - elevated reversal or over-crediting risk.
C
DeficientScore 20–44

Fundamental gaps in additionality or measurement integrity.

Very high risk - material over-crediting risk.
D
DistressedScore below 20

No material evidence of genuine, verifiable emissions impact.

Distressed - credits should not be relied upon.
09 · Mapping to the SYNE Index

How this rating becomes a point on the Index.

The SYNE Index plots every rating on two axes: Standards Alignment and Data Quality & Assurance. For Carbon Ratings, the Standards Alignment axis is derived from the weighted average of the Additionality & Baseline, Permanence & Reversal Risk, and Co-benefits & Safeguards dimension scores; the Data Quality & Assurance axis is derived directly from the MRV & Data Integrity dimension and the data quality flags described in Section 06. See the SYNE Index Methodology for the full cross-product calculation.

High X · High Y

Front Runners

Strong additionality, permanence and co-benefits, backed by rigorously verified MRV data.

High X · Lower Y

Rising Stars

Strong project fundamentals, with MRV verification depth still maturing.

Lower X · High Y

Emerging Stars

Rigorously verified data, applied to a narrower additionality or permanence case.

Lower X · Lower Y

Backmarkers

Weak additionality or permanence case, with limited or unverifiable MRV data.

10 · Governance & Independence

Who signs off on a rating, and how conflicts are managed.

Committee

Independent Rating Committee

A committee separate from the lead analyst reviews and approves every rating before publication.

Conflicts

No pay-for-rating influence

Fees are agreed before an engagement begins and have no bearing on the rating outcome; analysts hold no financial interest in rated companies.

Draft review

Factual accuracy review only

Rated companies may review a draft rating once, strictly for factual accuracy - not to negotiate the score.

11 · Review Cycle, Triggers & Appeals

When a rating is revisited, and how to challenge one.

Scheduled

Annual review

Every rating is fully reassessed at least once every 12 months, aligned to the company's own reporting cycle where possible.

Triggered

Interim review triggers

A material controversy, restatement, M&A event, or leadership change can trigger an interim review ahead of the next scheduled cycle.

Appeals

Factual accuracy window

Rated companies have 10 business days from draft delivery to raise a factual accuracy challenge before a rating is finalised.

12 · Limitations & Version History

What this rating does not do.

A Carbon Rating is an opinion of a project's or issuer's carbon integrity as of the rating date - it is not a guarantee that credits will be issued, a price forecast, or an investment recommendation. It relies on registry documentation, field data and geospatial analysis available at the time, and cannot detect fraud or concealment that no available evidence would reveal.

VersionEffective dateSummary of changes
v2.1Jul 2026Added Carbon Market Principles and Continuous Monitoring sections; added independent third-party data as a distinct source category.
v2.0Jan 2026Introduced the non-compensatory MRV data quality floor; expanded Biomass Atlas geospatial integration.
v1.1Jan 2025Added Co-benefits & Safeguards as a standalone dimension, previously scored within Additionality.
v1.0Jan 2023Initial publication of the Carbon Ratings Methodology.

This document is available in full, including prior versions, on request as part of SYNE's regulatory disclosure pack. For questions about how a specific criterion is scored, contact SYNE's methodology team.

See how this methodology applies to your project.

Talk to our team about commissioning a Carbon Rating, or request a pre-issuance feasibility assessment first.