Platts to update Voluntary Carbon Credits Methodology to better reflect impact of host country credit export bans

Platts, part of S&P Global Commodity Insights, will update its Voluntary Carbon Credits methodology, effective Nov. 21, 2022, in order to better reflect the impact of host country credit export bans on voluntary carbon credits.

This change will cover both already introduced and future export bans of VCM credits by specific host countries.

Platts will amend its voluntary carbon credit methodology to explicitly state that its voluntary carbon credit assessments reflect the most internationally fungible carbon credits laid out in the Platts Voluntary Carbon Credit Methodology.

Currently, the Platts Voluntary Carbon Credit price assessments reflect the most competitive credits by project type that meet the specifications laid out in the Platts Voluntary Carbon Credit Methodology.

This decision follows on from a proposal note published Oct. 10, 2022, and available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/101022-platts-proposes-to-update-its-voluntary-carbon-credits-methodology-to-better-reflect-the-impact-of-host-country-credit-ex

Following the formal adoption of Article 6 of the Paris Climate Agreement, more host countries are exploring the implications of the Corresponding Adjustment mechanism and the development of domestic carbon credit markets, which is expected to impact the availability of Voluntary Carbon Credits in the international market. Platts is continuing to monitor these changes as they develop.

Please send any feedback, questions or comments to platts_carbon@spglobal.com.

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