Energy Transition, Carbon

August 28, 2023

Platts proposes to specify vintage range for Yr01 Voluntary Carbon Credit price assessments

Platts, part of S&P Global Commodity Insights, proposes to specify the vintage range reflected by its Yr01, forward delivery, voluntary carbon credit price assessments, effective October 9, 2023

Currently, Platts publishes a number of its daily Voluntary Carbon Credit price assessments both for Current Year and for Yr01 delivery. Platts proposes to amend the methodology for its Yr01 assessments to reflect the concentration of vintages typically traded for forward delivery.

Platts specifies the vintage range for its current year spot price assessments in its Carbon Markets Specifications Guide (available at this link: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/method_carbon_credits.pdf) but it does not currently specify the vintage range reflected by its Yr01 price assessments.

In practice, Platts has assessed its Yr01 delivery carbon price assessments by reflecting the maturations or vintages reported in the table below.

However, Platts understands that voluntary carbon credits with more recent vintages are typical for forward delivery for most credit types. It therefore proposes to narrow the vintages reflected by its Yr01 price assessments as follows:

Price Assessment Currently reflected vintage range Proposed vintage range
Platts Renewable Energy Yr01 Each of the past two years Current year and Yr01
Platts Methane Collection Yr01 Each of the past two years Current year and Yr01
Platts Industrial Pollutants Yr01 Each of the past two years Current year and Yr01
Platts Household Devices Yr01 Each of the past three years Current year and Yr01
Platts Nature-Based Avoidance Yr01 Each of the past four years Each of the past three years, including current year and Yr01
Platts Natural Carbon Capture Yr01 Each of the past four years Each of the past three years, including current year and Yr01
Platts Tech Carbon Removal Yr01 Each of the past four years Current year and Yr01

Platts rolls the vintage years reflected in its Voluntary Carbon Credit assessments on the first working day of Q3 each year. Platts rolls the delivery year for the credits reflected in its Voluntary Carbon Credit assessments on the first day of the new year.

For example, on Oct. 9, 2023, Platts Nature-Based Avoidance Yr01 price assessment would reflect credits for delivery in 2024 and with a 2021-2024 vintage, as opposed to 2019+ vintage under the current application of the methodology. On July 1, 2024, Platts Nature-Based Avoidance CY price assessment would reflect credits for delivery in 2025 and with a 2022-2025 vintage range.

Platts Voluntary Carbon Credit Yr01 price assessments reflect credits issued by projects that are certified by one of the standards outlined in Platts Specification Guide for Carbon Markets.

Please send any further 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.