Considerations for procurement of durable credits

When sourcing projects for investment, hexTerra considers the below criteria:

Avoidance v. Removal:

Does a project prevent CO2 from being emitted, or remove existing CO2 from the atmosphere?

Measurement and crediting accuracy:

Has a project accurately reported on activities that directly translate to avoidance/removal of CO2?

What is the risk that more credits are issued than achieved?

Is the project registered with a reputable third party?

Additionality:

Does a credit purchased and retired lead to CO2 being avoided/sequestered that would not have otherwise happened?

Permanence:

What is the risk that carbon avoided/removed by the project will not remain for the time committed?

Co-benefits:

What is the project's sustained impact over time on biodiversity, local communities, and other

Project maturity:

What is the current state of funding for the project?

Has a project completed a pilot, or generated credits and tested a plan of execution?

hexTerra evaluates and mitigates the below risk categories through diligence and deal structuring