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This technical brief describes Phase 2 of the Carbon Rating Framework developed by the Climate Policy Initiative (CPI). The framework aims to integrate emissions performance into financial decision-making by assigning a carbon rating (CR1–CR10) based on a company's emissions intensity relative to its revenue. Phase 2 involved testing the framework on a sample of 50 companies to validate its feasibility and ability to differentiate emissions performance across various sectors.

This white paper by the Climate Policy Initiative (CPI) proposes a Carbon Rating Framework designed to help the financial sector incorporate emissions intensity into investment and lending evaluations, specifically to enable transition finance for hard-to-abate sectors in India.