Platts to publish voluntary carbon credit price assessments Jan 4

Following market consultation and feedback, Platts will begin publishing a new, daily assessment reflecting the CORSIA-eligible carbon credit market, to be called Platts CEC, effective January 4, 2021.

Carbon emissions pricing under the Paris Agreement is moving beyond local and regional compliance to a global stage of voluntary carbon credits, setting up a heterogeneous marketplace with a broad range of mechanisms, standards and types. Under the International Civil Aviation Organization, airlines have committed to reducing their Carbon footprint through an initial voluntary period (2021-2023) and a subsequent mandatory reduction period (2024 onwards), per the registry and methodology limits set out here: https://www.icao.int/environmental-protection/CORSIA/Pages/default.aspx

Liquidity in the associated voluntary carbon markets has gradually grown and Platts believes the market now requires transparency in pricing and activity.

Platts reflects credits from projects certified by the following groups: The Gold Standard, Climate Action Reserve (CAR), Verified Carbon Standard (VCS), Architecture for REDD+ Transactions, and American Carbon Registry. Platts reflects the methodologies for the above standards for the relevant types of carbon credit projects as specified by ICAO.

The Platts CEC assessment will reflect bids, offers and trades for any CORSIA-eligible credits verified by the above groups as reported in either the Platts Market on Close process, in the brokered market, or on trading and exchange instruments for delivery within the current calendar year. This would include any trading activity in instruments that reflect delivery of CORSIA-eligible credits.

The CEC is measured in $/mtCO2e and represents five lots of 1,000 CO2e units each. It reflects value at 16:30 London time.

The daily spot assessment will be available in the Platts Pricing Database under code PCECA00, and on fixed pages MH 1414 and MH 0483.

Please send all comments, feedback and questions to pricegroup@spglobal.com

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request. To see this note and others, please go to https://www.spglobal.com/platts/en/our-methodology/subscriber-notes