Platts launches daily vintage spreads for Nature-Based Avoidance Current Year carbon price

Platts, part of S&P Global Commodity Insights, has launched daily vintage spreads for its Nature-Based Avoidance Current Year carbon price assessment on Sept. 11.

Platts now publishes daily spread assessments for each of the vintages of the last six years, including the current year.

The spreads are relative to the baseline Nature-Based Avoidance Current Year assessment and capture the growing need for additional price granularity in the nature-based avoidance segment of the voluntary carbon market.

The Platts Nature-Based Avoidance assessment reflects the spot market for maturations, or vintages, in a five-year window.

Platts rolls the annual vintage years for the vintages reflected in its Voluntary Carbon Credit assessments on the first working day of the third quarter.

The annual vintage roll will also update vintages priced by the daily vintage spreads.

For example, on Sept. 11, Platts Nature Based Avoidance assessment will reflect vintages 2019-2023 and will roll to 2020-2024 on July 1, 2024.

From Sept. 11, Platts has begun assessing spreads for each of the vintage years within its Nature-Based Avoidance assessment -- (currently 2019-2023), as well as one year earlier (currently 2018).

From July 1, 2024, Platts will assess spreads for each of the vintage years within the then Nature-Based Avoidance assessment -- (2020-2024), as well as one year earlier (2019).

Platts defines Nature-Based Avoidance projects as any projects that fall within the AFOLU category. That includes, but is not limited to, credits that avoid deforestation (including REDD/REDD+), no till farming and wetland management.

The Platts Nature-based Avoidance assessment reflects the most competitive, most internationally fungible carbon credits issued by nature-based projects that avoid GHG emissions and that meet the specifications around vintages, volume, SDGs and fungibility highlighted in the Platts Carbon Markets Specifications Guide, available here.

The Platts Nature-Based Avoidance vintage spread assessments are published to a 1200 GMT timestamp.

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

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