Lord Stern will launch the world's first credit rating system for carbon offset projects in the developing world this month.
The system will award debt-style 'AAA' ratings for the best and most expensive projects - and 'junk' ratings for the riskiest. The aim is to help investors wanting to buy carbon credits from projects to judge which ones to invest in and which to avoid. An estimated two-thirds of the 3,000 offset projects being developed under the UN's programme are either late or will fail to deliver the promised carbon savings.
The peer, author of the influential Stern review on climate change, is now vice-chairman of financial research firm IDEAglobal, whose subsidiary IDEAcarbon will offer the service.
Myriad standards already exist for offset projects. The principal measure - the 'gold standard' - is awarded to projects which, as well as reducing carbon emissions, also promote the sustainable development of the host countries.
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