How ESMA regulation can make carbon markets stronger

As carbon rating providers prepare to seek authorisation under the EU ESG Ratings Regulation, BeZero called on ESMA to establish clear boundaries between regulated ratings and other carbon-market services. The company said existing guidance provides greater clarity on permitted business models, engagement with rated entities, governance and organisational disclosures. However, BeZero argued that rating providers and their wider corporate groups should not also offer project design, data, digital MRV or verification services to developers or standards bodies whose work they rate. In its view, conducting both activities creates a structural conflict that cannot be adequately addressed through disclosure, staff separation or separately governed subsidiaries. BeZero urged ESMA to require regulated rating groups to remain functionally independent, arguing that such separation would strengthen the credibility, confidence and trustworthiness of carbon-market ratings.
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