Aug 09, 2021
Following market consultation and feedback, S&P Global Platts has launched a new suite of voluntary carbon credit assessments capturing a wide array of different types of project types, effective Aug. 9, 2021.
Liquidity in the voluntary carbon markets has grown substantially over the last year and is expected to continue to accelerate, and Platts’ new carbon assessments will help to bring much needed further pricing transparency to the entire market during this critical period.
Platts has begun publishing two new basket-style price assessments:
– Platts CAC will reflect Avoidance-based carbon credit projects and will be made up of individual assessments of Platts Household Devices (launched June 14), Platts Industrial Pollutants, and Platts Nature-Based Avoidance.
– Platts CRC will reflect Removals-based carbon credit projects and will be made up of individual assessments of Natural Carbon Capture and Tech Carbon Capture.
Each basket will be comprised of individual assessments of different types of voluntary carbon credit projects, with the most competitive price within the basket setting the benchmark price on the day.
For Example, if Household Devices Current Year is assessed at $6.60/mtCO2e, Industrial Pollutants is assessed at $6.75/mtCO2e, and Nature-Based Avoidance is assessed at $6.55/mtCO2e, Platts CAC would be assessed at $6.55/mtCO2e. Similarly, if Natural Carbon Capture Current Year is assessed at $20/mtCO2e and Tech Carbon Capture was assessed at $25/mtCO2e, Platts CRC would be assessed at $20/mtCO2e.
Platts has also begun publishing independent, stand-alone assessments for Renewable Energy carbon credits and Methane Collection Carbon Credits.
Platts is publishing all new assessments, as well as Platts Household Devices, for both current year delivery and delivery one year forward. So, for example, in June 2021, Platts would publish assessments for delivery in both 2021 and 2022.
All of these new assessments will reflect 20 lots of 1,000 CO2e units each and will carry standard SDG co-benefits. They are measured in $/mtCO2e and published to a 12:00 GMT timestamp and according to a global holiday schedule, in line with the methodology change here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/070621-platts-to-change-assessment-time-for-carbon-credit-assessments-to-1200-gmt
Platts individual carbon credit assessments reflect the standard co-benefits per type of project, but any additional co-benefits may be normalized back to a neutral credit of that type for the purposes of assessment. For example, for Nature-Based Avoidance credits, Platts considers additional environmental co-benefits as part of the standard definition of project. Any additional social co-benefits however, may be normalized.
Platts has also begun publishing conversions for all of its Carbon Credit assessments, for a 12:00 GMT time, in Euros, Chinese Yuan, Japanese Yen, Brazilian Reals, Indian Rupees, Australian Dollars, Singapore Dollars and Russian Rubles. Platts has launched new currency conversions for 12:00 GMT.
These new assessments will sit alongside Platts CEC, which reflects CORSIA-eligible carbon credits, and Platts CNC, which reflects nature-based carbon credits.
All of Platts carbon assessments reflect a global price for a specific type of credit. Any factors that impact the price of a carbon credit that are linked to its geographical location will be normalized to reflect a global carbon price.
Platts introduced its first carbon credit assessment, Platts CEC, on Jan. 4, 2021, in a note available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/121620-platts-to-publish-voluntary-carbon-credit-price-assessments-jan-4
The new $/mtCO2e assessments will be available on Platts Dimensions Pro and in the Platts Pricing Database under the below codes:
For a complete list of conversion codes, please see the Carbon Markets Methodology and Assessment Guide available here: https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/method_carbon_credits.pdf
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