Platts proposes to update project types reflected in Natural Carbon Capture and Tech Carbon Capture assessments

Platts, a division of S&P Global Commodity Insights, is proposing to update the types of credits it reflects in its Technological Carbon Capture and Natural Carbon Capture voluntary carbon credit assessments from Jan. 2, 2023, in order to better reflect the distinction between the Avoidance and Removal Voluntary Carbon Credit markets.

This proposal follows on from the Platts Voluntary Carbon Markets methodology consultation here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062822-platts-to-launch-voluntary-carbon-markets-methodology-consultation.

As part of the consultation, Platts sought feedback from market participants on various elements that make up the Platts Voluntary Carbon Credit methodology. The feedback was sought as part of the process to ensure the Platts assessments reflect the fast-evolving market.

Platts is proposing to update its definition of credits reflected in its Natural Carbon Capture assessments to exclude Biochar, which would instead be classified as a Technology Carbon Capture credit. Currently, Platts methodology defines Natural Carbon Capture as any greenhouse gas (GHG) removal project that falls under the Forestry, Farming and Land Management Category including, but not limited to, credits generated from reforestation and afforestation projects, soil sequestration (including biochar), and wetland restoration. The proposed change would update this methodology language to include any GHG removal projects that falls under Agriculture, Forestry and Other Land Use (AFOLU) including, but not limited to, credits generated from reforestation, afforestation, soil sequestration (not including biochar), and wetland restoration projects.

Platts is proposing to amend its positioning of biochar, in order to better reflect widely understood definition of biochar in the market. Platts is proposing to update its definition of credits to be included in the definition of Tech Carbon Capture to include Direct Air Capture (DAC), Mineralization, Bioenergy with Carbon Capture and Storage (BECCS) and biochar. Under this proposed change, Carbon Capture, Utilization and Storage (CCUS) would be reclassified as an avoidance credit under the Platts Industrial Pollutants definition. Currently, Platts methodology includes CCUS under Tech Carbon Capture and Biochar under Natural Carbon Capture.

Please send any feedback to Platts_Carbon@spglobal.com and pricegroup@spglobal.com by Nov. 30, 2022. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.