akar.earthCarbon Credit and Project Due Diligence
Carbon credit and project due diligence for buyers and investors in Southeast Asia: baseline, additionality, permanence, safeguards and data checks.
Carbon credit and project due diligence tells a buyer or investor whether a nature-based carbon project in Southeast Asia is likely to deliver the credits and the integrity it promises. We review the documents, the data and the land itself, and report the risks in plain terms with a clear view on each.
Who it is for
- Corporate buyers procuring nature-based credits or signing offtake agreements.
- Investors and funds providing prepayment or equity to project developers.
- Brokers and platforms that need an independent technical view.
- Developers preparing for buyer scrutiny who want a pre-emptive review.
The problem it solves
Indonesia is the largest source of nature-based credits in Southeast Asia, mostly REDD+. The best-rated Indonesian projects score well; BeZero’s average for 11 rated ex-post Indonesian projects is ‘A’, and prices rise roughly 40% per rating band. But quality varies widely, and controversies over REDD+ baselines have shown that a registered project is not automatically a sound one. Buyers need to know which risks they are taking before they sign. Our guide to project due diligence for buyers sets out the questions.
What we deliver
- Methodology and standard check: version, deviations and CCP label status under the ICVCM two-tick test.
- Baseline and additionality review, including the REDD+ baseline approach and its sensitivity.
- Remote sensing cross-check: independent land-cover and change analysis of the project area and leakage belt.
- Monitoring data review: plot design, allometry, uncertainty and the link from field data to reported tonnes.
- Permanence and reversal risk: fire, peat, tenure and the buffer contribution.
- Legal and Indonesian regulatory review: carbon rights, licence status, SRUK recording and authorisation where relevant.
- Safeguards and benefit sharing: FPIC records, grievance mechanism and community evidence.
- Due diligence report with a red/amber/green risk summary and recommended contract protections.
How it works
- Scope. We agree which project or portfolio, which transaction and which risks matter most to you.
- Data room. You or the developer share the PDD, monitoring reports, verification reports, licences and contracts.
- Independent analysis. Satellite checks in AKAR Eligibility, recalculation of key parameters and document review.
- Site visit (optional). Plot re-measurement, boundary checks and community interviews.
- Report and call. Findings, open questions for the developer and recommended next steps.
What you provide
- Project identifiers and registry links.
- Access to the developer’s data room, or permission for us to request it.
- The proposed term sheet or contract, if you want contract-risk comments.
Typical timeline
A desk review of an issued project typically takes two to four weeks. Pre-issuance diligence with fieldwork typically takes four to eight weeks.
Tools we use
AKAR Eligibility for independent change analysis, the AKAR Carbon Simulator to stress-test projected volumes, and AKAR Mapper where drone imagery is needed on site.
Next step
Read how credit rating agencies assess projects and the climate finance overview. Then message us with the project name or ID and the deal you are considering. We reply with what we would check and how long it would take.
Frequently asked questions
What does carbon credit due diligence check?
It checks whether the credits represent real, additional and permanent climate benefit. That means reviewing the baseline, additionality, leakage, permanence and buffer, monitoring data, legal title and community safeguards, plus registry status and any corresponding adjustment.
Is a rating agency score enough?
Ratings are a useful input, and higher ratings tend to command higher prices. They do not replace checks specific to your transaction, such as contract terms, delivery risk and Indonesian carbon rights.
Can you review a project before it is issued?
Yes. Pre-issuance and prepayment deals carry more risk, so we focus on the design documents, field evidence, developer capacity and the realism of the projected volumes.
How long does due diligence take?
A desk review of an issued project typically takes two to four weeks. Pre-issuance diligence with a site visit typically takes four to eight weeks.