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solid world

Carbon Risk Identification and Scoring Principles

CRISP is an open and transparent framework designed to assess the risks associated with financing science-based carbon credit projects, with a focus on forward carbon credit delivery.

CRISP Objective

Capture the risks of non-delivery of forward carbon credit units

CRISP offers a comprehensive, Creative Commons licensed framework that captures major factors which lead to non-delivery of carbon credit units by examining crucial risk factors, allowing all stakeholders to make informed decisions while supporting global climate action initiatives.

Risk Factors scored by CRISP

Carbon Yield Risk illustration

1. Carbon Yield Risk

Estimates the likelihood of credit yield based on scenario modeling, utilizing both realistic and optimistic predictions. The accuracy of these estimates is improved through remote sensing, up-to-date data, and in-depth research.

climate catastrophe risk illustration

2. Climate Catastrophe Risk

Utilizes proprietary climate models to estimate the probability of climate-related events affecting project outcomes.

financial risk illustration

3. Policy and Legal Risk

Assesses risks at the national/jurisdiction and project levels using pre-set indicators to gauge the strength of legal and policy environments.

financial risk illustration

4. Financial Risk

Estimates vintage-specific financial risk using complete data (holistic financial models) or limited data (break-even year and yield models) methods, depending on data availability.

climate catastrophe risk illustration

5. Project Developer Risk

Analyzes the strength of project developers using standard indicators, such as developer experience, project team strength, and project network strength.

Scoring and Ratings

Calculates net forward risk scores based on the sum of the risk factors

These scores are then categorized into ratings ranging from AAA (prime) to D (junk) to help Solid World make informed decisions.
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As the sector continues to address the urgent need for carbon removal, new risk frameworks are essential in providing the necessary transparency and consistency in reporting on delivery risk. This will help ensure that we are making informed decisions and financing the projects that have the greatest potential for success.

Paul Young

Kita - Carbon Insurance

Solid World is one of the most professional, dedicated and solid teams in the climate space. They're doing essential work to expand the size of the market and finance more carbon projects.

Julia Lipton

Awesome People Ventures

We feel Solid World is doing something important – making pre-purchase deals trustworthy, liquid and transparent in the voluntary carbon market. We see great potential in this mission and are eager to help them achieve this goal.

Wassim Sahibi

SCB Group

Solid World has a similar mindset when it comes to leveraging blockchain technology to support climate innovators around the planet who are developing promising decarbonization projects. Our FinTech team and everyone here at Greycroft is excited about this partnership.

Nick Crance

Greycroft

Vlinder shares the vision of the Solid World that forward carbon liquidity is a missing element of the voluntary carbon market. We have partnered to jointly launch a forward carbon liquidity pool, collaborate to develop a risk assessment methodology for blue carbon as well as a forward carbon tokenization standard.

Sergey Ivliev

Vlinder

Solid World is a project that OFP is looking to support due to its track record of carbon credit management within the ReFi world, its reach to projects on the ground already, and the innovative thinking surrounding the growth of a sustainable carbon economy.

Jeremy Epstein

Open Forest Protocol

Solid World is rethinking the way planet-positive projects receive funding, by making it affordable and accessible to start initiatives that help address the greatest threat of our time.

Raphaël Haupt

Toucan