Platts launches CORSIA-eligible Credit Yr01 price assessment

Platts, part of S&P Global Commodity Insights, has launched a CEC Yr01 price assessment, effective March 4.

The Platts CEC Yr01 assessment reflects credits eligible under Phase 1 of the CORSIA scheme for delivery one year forward.

For example, on March 4, Platts CEC Yr01 reflects credits for delivery in 2025.

Platts publishes a Platts CEC Current year price assessment reflecting CORSIA Phase 1 eligible credits for delivery within the Current Year. Platts CEC Yr01 reflects credits with vintages 2021-26 for delivery one year forward, in line with Phase 1 CORSIA requirements.

Platts opened a consultation Oct. 9 seeking feedback on how to evolve its CEC assessment due to the expiry of the pilot phase of the International Civil Aviation Organization (ICAO) CORSIA scheme, and the start of Phase 1.

The consultation note is available via this link: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100923-platts-seeks-feedback-on-capturing-shift-from-corsia-pilot-to-phase-1-within-cec-assessment

Platts subsequently decided to reflect CORSIA Phase 1 eligible credits in its CEC Current Year assessment and launch a CEC Yr01 price which reflects CORSIA Phase 1 eligible credits for delivery one year forward in a note published on Nov. 28 and available via this link:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112823-platts-cec-price-assessment-will-reflect-phase-1-corsia-credits-from-jan-2

Under the ICAO, airlines have committed to reducing their carbon footprint through an initial voluntary period -- the pilot phase, 2021-23 -- and a subsequent period that is mandatory for all international airlines flights between those participating states.

According to the registry, Phase 1 is from 2024-26 and Phase 2 is from 2027 onwards.

The ICAO registry and methodology limits can be found here: https://www.icao.int/environmental-protection/CORSIA/Pages/default.aspx

Phase 1 CORSIA, CEC Yr01 assessments reflects credits that incorporate a Corresponding Adjustment.

As such, Platts will collect bids, offers or trades in which a seller commits to deliver a credit that incorporates a Corresponding Adjustment, and meets eligibility criteria under CORSIA Phase 1.

The volume reflected by the Platts CEC Yr01 assessment is 20,000-100,000 mtCO2e.

Bids, offers and transactions that exceed this range may be normalized for the purposes of assessment.

Full details on the current specifications of Platts CEC are set out in the Carbon Markets Specifications Guide available here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/method_carbon_credits.pdf

Please send any feedback to Platts_Carbon@spglobal.com and pricegroup@spglobal.com

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.