“Over the years we’ve invested significantly in our field data team - focusing on producing trusted ratings. While this ensures the accuracy of our Ratings, it doesn’t allow the scale across the thousands of projects that buyers are considering.”
For more information on carbon credit procurement trends, read our "Key Takeaways for 2025" article. We share five, data-backed tips to improve your procurement strategy.
One more thing: Connect to Supply customers also get access to the rest of Sylvera's tools. That means you can easily see project ratings and evaluate an individual project's strengths, procure quality carbon credits, and even monitor project activity (particularly if you’ve invested at the pre-issuance stage.)
Book a free demo of Sylvera to see our platform's procurement and reporting features in action.
General ESMA FAQs
What is ESMA? The European Securities and Markets Authority (ESMA) is one of the EU's key financial regulators. It supervises financial markets and, since 2011, credit rating agencies. It's now extending that role to ESG and sustainability ratings.
What is the EU ESG Ratings Regulation? Regulation (EU) 2024/3005. The EU's first dedicated framework for ESG and sustainability-related ratings, applicable from 2 July 2026.
What does it actually require? Governance, independence, conflict-of-interest management, and transparent methodologies. Plus disclosure of ownership, structure, and business model.
Is a rating provider allowed to charge issuers? Yes. Issuer-pay and subscription-based models are both explicitly permitted.
Does it cover how a rating is produced? Yes. It specifically requires methodologies to be rigorous, systematic, independent and capable of justification. In practice, that favours a published, rule-based framework over a committee reaching a judgment call on the day, since only the former produces the same result from the same evidence, regardless of who's applying it.
Who enforces it? ESMA, directly, across all EU member states. Because it's a regulation, not a directive, it applies uniformly without national transposition.
What's the authorisation timeline? Parties had to notify ESMA by 2 August 2026. Sylvera did so in July. Full application by 2 November 2026. Decision expected around Q1–Q2 2027.
Can I check if a provider is authorised? Yes. ESMA keeps a public register under Article 14, listing authorised, recognised, and registered providers, plus those with a pending application.
Does this exist outside the EU? ICMA introduced a voluntary code of conduct in 2024 (which Sylvera was the first carbon ratings provider to voluntarily adhere to). IOSCO, SBTi, VCMI, and ICVCM have related principles and consultations underway, and the UK FCA has regulation that will come into force in 2028.
For project developers
What's the benefit to project developers? A clearer split between bankable, well-assured credits and unverified claims, which should help strong projects stand out.
Does this change how my project gets rated? Not the rating process itself. It changes your rights and what providers must disclose.
What rights do I have in relation to a rating of my project? The regulation formalises engagement rights, so you can engage with a provider on its assessment of your project.
What do I need to disclose? Nothing new directly. The disclosure burden sits with rating providers, not developers.
What should I check when selecting a rating provider? Ownership structure, conflicts management, and whether they're authorised or in the ESMA application pipeline.
Does it matter how the provider produces a rating? Yes. If a rating can move depending on which analysts assess it, you have no consistent basis to know what you're being measured against, or to challenge a call you disagree with. A published framework gives you something concrete to engage with.
Does a stale rating still count as compliant? Ensuring that ratings are based on high-quality data, is part of what the regulation is pushing the market toward. This includes keeping ratings current.
For carbon credit buyers
What changes for me as a buyer? A way to tell authorised, accountable rating providers apart from unregulated ones.
How do I know a rating is trustworthy? Check who issued it, when it was last updated, and what disclosures sit behind it. It's also worth checking how the rating was actually produced: a framework-led rating is repeatable and auditable, the same evidence produces the same result, and you can check the methodology behind it. A judgment-led rating depends on who's in the room on a given day, which makes it harder to reconstruct or challenge after the fact.
Should I still check my accounting standards separately? Yes. A rating tells you about the credit. Accounting standards (GHG Protocol, CSRD-linked frameworks) tell you how to report using it.
How current should a rating be before I rely on it? Always check the update date. It should be recent enough to reflect the project's latest circumstances, not a multi-year-old snapshot.
Does ESMA authorisation guarantee rating quality? It guarantees governance and process standards. It's not a substitute for checking the substance of the rating itself.
Sylvera & ESMA
Has Sylvera applied for authorisation? We've notified ESMA of our intention to apply. Our full application will follow by 2 November 2026.
Is Sylvera authorised yet? Not yet - at the time of writing, not ratings providers have been formally authorised. Sylvera has notified ESMA that it wishes to continue operating in the EU. Our application is in progress and a decision expected in the first half of 2027. We fully expect to be an authorised provider.
Does this change anything for customers today? No. Nothing changes in how we work with customers while the application is under review.
Why is Sylvera applying? Because we've always argued that ratings that influence real decisions should be founded on independent, accountable governance.
Is Sylvera's rating process framework-based or judgment-based? Framework-based. One published framework per project type decides the rating; analysts apply it, they don't set the outcome from scratch each time. The same evidence produces the same rating regardless of who's assessing it, and every rating carries the framework version it was assessed under.
Has Sylvera ever sold a carbon credit? No. Never has, and holds no financial stake in the outcome of any rating.
Is Sylvera's data security certified? Yes, under ISO 27001, the industry benchmark. Sylvera is the only carbon ratings provider with that certification.
Has Sylvera engaged with regulators before this? Yes. First carbon ratings provider to voluntarily adhere to the ICMA Code of Conduct for ESG Ratings and Data Products, in 2024. Active in FCA, IOSCO, and other consultations since.
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