Platts to update credit specifications for its Household Devices assessments, introduce published differentials

Platts, a division of S&P Global Commodity Insights, will update the standard specifications of its Household Devices assessments from Feb. 1, 2023, and will introduce daily differential assessments to capture specific attributes of different types of projects.

This decision follows on from a proposal published Oct. 21 and available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/102122-platts-proposes-to-update-projects-reflected-in-its-household-devices-assessments .

Under this change, Platts will amend the standard specifications of its Household Devices assessments to include credits generated by Cookstoves and Water Access projects including, but not limited to, water filters and boreholes.

Currently, the Platts Household Devices assessments reflected credits for projects that lead to improved Energy Efficiency and Water Access, including, but not limited to, Clean Cookstoves projects, improved building energy efficiency, and clean water access. Following this change, the specification will no longer include credits generated by Energy Efficiency projects.

However, Platts understands that Energy Efficiency credits are a key part of the broader carbon credit market and typically trade at a differential to other household device credits. Platts will therefore introduce a daily assessment of this differential. Energy Efficiency credits may be reflected in the Household Devices assessments after applying the published differential to normalize traded value back to the standard.

Platts will also begin publishing a daily differential assessment reflecting Household Devices credits from Least Developed Countries (LDCs) from Feb. 1. Recent market feedback indicated that these credits – particularly Cookstoves credits – price at a differential to Household Devices credits from other host countries.

The introduction of differentials will allow these projects to be better captured within the Platts Household Devices assessment.

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.