Platts proposes to amend CEC methodology in line with ICAO regulations

Platts, part of S&P Global Commodity Insights, proposes to amend its methodology for the Platts CORSIA Eligible Credit price assessment to incorporate all methodologies and standards that the International Civil Aviation Organization has approved, effective Jan. 31.

ICAO is the regulatory body governing the Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA. Platts proposes to align its Platts CEC methodology with the latest regulatory changes that define CORSIA credits, including any additional requirements to be met by the standards around a corresponding adjustment, or insurance for credits.

A corresponding adjustment guarantees the host country will not claim the credit against its own climate goals, known as Nationally Determined Contributions. This prevents the double counting of credits and is essential for carbon trading between countries as outlined in Article 6 of the Paris Agreement.

Platts proposes to no longer look at only a promise of CA for delivery, but actual CA received as per ICAO's latest guidelines or insurance, wherever applicable. Further, standards may have to meet additional criteria to deem credits eligible like specific insurance providers, which Platts will also take into consideration as specified by the standards in accordance with ICAO regulations.

This involves reflecting only market data in the Platts CEC assessment that aligns with the requirements for a credit to be CORSIA eligible in phase 1 ( 2024-2026 ), and in phase 2 (2027-2035).

Should market data and received heards not operationally reflect a carbon credit that is CORSIA-eligible, Platts will not consider this data for the assessment of Platts CEC.

Platts proposes to further continue to align its CEC methodology with ICAO on any changes or additions made to the eligible credits and standards.

For information on Platts carbon credit price assessments, please consult our Carbon Credits Specification Guide.

Please send any comments, feedback and questions to platts_carbon@spglobal.com and pricegroup@spglobal.com by Jan. 16, 2025.

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.