Due Diligence
At Carbon Floor, we understand the critical importance of due diligence in the carbon offset market. Our comprehensive due diligence process for carbon projects is designed to ensure the quality, integrity, and effectiveness of your investments in climate action. Here’s what our due diligence service entails:
Project Assessment
- Additionality Verification: We rigorously evaluate whether the project’s emission reductions would have occurred without carbon finance support.
- Methodology Review: Our experts analyze the carbon accounting and monitoring methodologies to ensure they align with industry standards.
- Baseline Studies: We examine carbon and biodiversity baselines to accurately measure the project’s impact
Quality Assurance
- Carbon Performance: We assess the project’s actual carbon sequestration or emission reduction capabilities.
- Permanence Evaluation: Our team verifies that the project’s climate benefits are long-lasting and not temporary.
- Leakage Analysis: We investigate potential unintended emissions outside the project boundariest
Compliance and Standards
- Regulatory Alignment: We ensure the project complies with national and international regulations.
- Certification Review: Our experts evaluate any co-benefit certifications and their relevance to your ESG strategy
Stakeholder Engagement
- Community Consent: We verify that proper consultations have been conducted and local populations have given their informed consent
- Social Impact Assessment: Our team evaluates the project’s effects on local communities and potential co-benefits
Financial Viability
- Cost-Benefit Analysis: We conduct a thorough assessment of the project’s financial sustainability and potential returns
Risk Management
- Climate Vulnerability: We assess the project’s resilience to potential climate change impacts.
- Reputational Risk: Our due diligence helps protect your company from greenwashing accusations and maintains your credibility in climate action