Platts updates credit specifications for its Household Devices assessments, introduces published differentials

Platts, part of S&P Global Commodity Insights, has updated the standard specifications of its Household Devices assessments effective Feb. 1, 2023, and has introduced daily differential assessments to capture specific attributes of different types of projects.

A decision was published Nov. 30, 2022, available here.

Under this change, Platts has amended the standard specifications of its Household Devices assessments to include credits generated by Cookstoves and Water Access projects including, but not limited to, water filters and boreholes.

Previously, the Platts Household Devices assessments reflected credits for projects that lead to improved Energy Efficiency and Water Access, including, but not limited to, Clean Cookstoves projects, improved building energy efficiency, and clean water access. Following this change, the specification no longer includes credits generated by Energy Efficiency projects.

However, Platts also recognizes that Energy Efficiency credits are a key part of the broader carbon credit market and typically trade at a differential to other household device credits. Platts has introduced a daily assessment of this differential. Energy Efficiency credits may be reflected in the Household Devices assessments after applying the published differential to normalize traded value back to the standard.

Platts has also begun publishing a daily differential assessment reflecting Household Devices credits from Least Developed Countries (LDCs) from Feb. 1. Recent market feedback indicated that these credits -- particularly Cookstoves credits -- price at a differential to Household Devices credits from other host countries.

The introduction of differentials allows these projects to be better captured within the Platts Household Devices assessment.

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