Energy Transition, Carbon, Emissions

January 27, 2025

Platts to update component weightings for Platts Decarbonization Index for 2025

Platts, part of S&P Global Commodity Insights, will update the component weightings used in the calculation of the Platts Decarbonization Index (ABZIA00), effective Feb. 3.

The revised weightings will reflect an update in retirement data for 2024, as collated by the S&P Global Commodity Insights analytics team.

The new weightings for the components will be as follows:

Credit Type Assessment Symbol Currency/UoM Previous Weighting Revised Weighting from Feb 3, 2025
Household Devices 17.74% 24.10%
Platts Household Devices $/mtCO2e Current Year CNHDD00 $/mtCO2e
HHD LDC Project Differential $/mtCO2e AHHDA00 $/mtCO2e
Tech Carbon Capture 5.45% 0.30%
Platts Tech Carbon Capture $/mtCO2e Current Year ATCCA00 $/mtCO2e
Natural Carbon Capture 11.66% 15.06%
Platts Natural Carbon Capture $/mtCO2e Current Year ANCCA00 $/mtCO2e
Nature Based Avoidance 65.16% 60.54%
Platts Nature-Based Avoidance $/mtCO2e Current Year ANBAA00 $/mtCO2e
Platts Nature-Based Avoidance Vintage Current Year-3 Spread APNBC00 $/mtCO2e
Platts Nature-Based Avoidance Vintage Current Year-2 Spread APNBD00 $/mtCO2e
Platts Nature-Based Avoidance Vintage Current Year-1 Spread APNBE00 $/mtCO2e
Platts Nature-Based Avoidance Vintage Current Year Spread APNBF00 $/mtCO2e

Due to the changing trends in retirements for certain credit types, the updated weightings will have an impact on the value of the Platts Decarbonization Index, largely owing to a relative reduction in retirements of Tech Carbon Capture credits in 2024.

An example of this, using Jan. 20, 2025 prices, can be found below:

Assessments Relative value using Previous Weighting Relative value using Revised Weighting from Feb. 2025 onward Currency/UOM
Household Devices 0.64 0.87 $/mtCO2e
Tech Carbon Capture 7.90 0.44 $/mtCO2e
Natural Carbon Capture 1.68 2.17 $/mtCO2e
Nature Based Avoidance 4.37 4.06 $/mtCO2e
Platts Decarbonization Index 14.59 7.54 $/mtCO2e

The Platts Decarbonization Index is a weighted average of some of Platts' key price assessments, spreads and differentials in the Voluntary Carbon Markets. The weightings are reviewed annually to keep the index representative of global supply and demand trends. Most retirements are completed before the end of each year. To remain consistent and take into account the majority of retirements, Platts will update its weightings on the first business day of Q2 in future years. For example, the weightings for the Platts Decarbonization Index will be updated to take into account full-year 2025 retirements on April 1, 2026.

More details about the calculations and methodology of the index can be found in the Platts Global Commodity Indices Specifications Guide.

Please send any feedback or questions to pricegroup@spglobal.com.

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