{"id":103053,"date":"2025-11-14T06:50:51","date_gmt":"2025-11-14T06:50:51","guid":{"rendered":"https:\/\/www.climatepolicyinitiative.org\/?post_type=cpi_publications&p=103053"},"modified":"2026-04-03T10:45:58","modified_gmt":"2026-04-03T10:45:58","slug":"carbon-rating-framework-phase-2","status":"publish","type":"cpi_publications","link":"https:\/\/www.climatepolicyinitiative.org\/pt-br\/publication\/carbon-rating-framework-phase-2\/","title":{"rendered":"Carbon Rating Framework – Phase 2"},"content":{"rendered":"\n

The Carbon Rating Framework Phase 2 builds on Climate Policy Initiative\u2019s ongoing effort to integrate emissions performance into financial decision-making. As India advances toward its net-zero and Paris Alignment goals, the financial sector faces growing demand for tools that can systematically assess whether corporate activities align with these targets.<\/p>\n\n\n\n

Despite increasing awareness, most investment and lending evaluations continue to depend on traditional credit ratings, which often overlook carbon performance and may misclassify climate-positive businesses as high-risk, particularly those pioneering low-carbon technologies or novel transition models.<\/p>\n\n\n\n

To address this gap, CPI developed the Carbon Rating Framework, a methodology designed to evaluate companies based on their carbon emission intensity and the pace of their reductions, offering a new way to incorporate environmental performance into financial analysis.<\/p>\n\n\n\n

What Phase 2 Delivers<\/strong><\/h2>\n\n\n\n

Phase 1 established the conceptual foundation and methodology for the framework. Phase 2 takes this forward by applying the model to a representative sample of Indian companies, testing its feasibility, and refining the approach through engagement with market participants.<\/p>\n\n\n\n

The results demonstrate both the technical viability of generating rating-based assessments of emissions intensity and their potential applications to transition finance.<\/p>\n\n\n\n

Insights from Phase 2 Testing<\/strong><\/h2>\n\n\n\n

Applying the framework to 50 companies across 10 sectors revealed a balanced distribution across all carbon rating levels, demonstrating strong differentiation and comparability:<\/p>\n\n\n\n