Platts launches Native Species, Latin America Renewable Energy differentials

Platts, part of S&P Global Commodity Insights, launches daily assessments of price differentials for Native Species and Renewable Energy voluntary carbon credits on March 11.

The prices reflect the need for added specificity in the global voluntary carbon market, in line with sustained market interest in additional segments of the carbon market.

This follows a decision published in a subscriber note on Feb. 6, which can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/020624-platts-to-launch-native-species-latin-america-renewable-energy-differential-china-renewable-energy-differential-on-hold

Platts launches the following new differential assessments:

Native Species Differential

The Native Species differential assessment reflects a daily price differential for carbon credits generated from afforestation/reforestation projects involving 100% native species. The differential is assessed as a discount or premium to the Platts Natural Carbon Capture Current Year price assessment, published in $/mtCO2e.

Platts understands that there is an emerging spread between afforestation/reforestation projects involving native species and afforestation/reforestation projects that do not involve native species. The Platts Natural Carbon Capture assessment reflects the most competitive of the most fungible carbon credits issued by nature-based projects that remove greenhouse gas emissions.

Further specifications of this differential will match those for the Platts Natural Carbon Capture Current Year assessment and are listed below.

Volume range: 5,000/mtCO2e to 50,000/mtCO2e

Vintage range: Each of the last five years, including the current year. For example, on March 11, 2024, the current year assessment would consider vintages 2019-2023, rolling to 2020-2024 from July 1, 2024.

Delivery: Current-year delivery and delivery one year forward.

Co-benefits: Biodiversity SDGs as standard; credits with additional SDG co-benefits may be normalized.

Latin America Renewable Energy Differential

Platts launches a Latin America geography-based differential for carbon credits generated from renewable energy projects. The differential will be assessed as a discount or premium to the Platts Renewable Energy price assessment, published in $/mtCO2e.

Platts initially proposed geography-based differentials for both Latin America and China on Jan. 8, 2024, in a proposal note that can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/010824-platts-proposes-to-launch-native-species-renewable-energy-differentials

Further specifications of the Latin America differential will match those for the Platts Renewable Energy Current Year assessment and are listed below.

Volume range: 50,000/mtCO2e to 150,000/mtCO2e

Vintage range: Each of the last three years, including the current year. For example, on March 11, 2024, the Current Year assessment would consider vintages 2021-2023, rolling to 2022-2024 from July 1, 2024.

Delivery: Current-year delivery and delivery one year forward.

Details of the Platts carbon methodology and assessments are available here.

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