Platts proposes to launch blue carbon and BECCS price assessments

Platts, part S&P Global Commodity Insights, proposes to launch the following additional daily price assessments to expand its current suite of voluntary carbon credit prices on March 11, 2024.

The additional prices would reflect the need for added specificity in the global voluntary carbon market. Platts has noted sustained market interest in the carbon credit segments below and seeks feedback on the proposal to launch the following new assessments.

Blue carbon price assessments

Platts proposes to launch two daily price assessments for carbon credits generated from blue carbon projects. The assessments -- one for current year delivery and one for Yr01 delivery -- will reflect the most competitive of the most fungible carbon credits issued by blue carbon projects that remove or sequester GHG emissions.

Platts defines blue carbon as any project that captures, removes or sequesters carbon through ocean or coastal ecosystems. This includes, but is not limited, to, projects that remove carbon through coastal wetlands and mangroves, tidal and salt marshes and seagrass meadow restoration projects.

Blue carbon credits are currently included in the Platts Natural Carbon Capture assessment. Platts proposes to launch outright price assessments for blue carbon with the following additional specifications:

Volume range: 5,000 to 50,000/mtCO2e

Vintage range: Each of the last five years, including the current year. For example, on March 11, 2024, the current year assessment would consider vintages 2019-2023, rolling to 2020-2024 from July 1, 2024. The Yr01 assessment would consider vintages of each of the past three years including current year and Yr01. For example, on March 11, 2024, the Yr01 assessment would consider vintages 2022-2024, rolling to 2023-2025 from July 1, 2024

Delivery: Current year delivery and delivery one year forward

Co-benefits: Biodiversity SDGs as standard; credits with additional SDG co-benefits may be normalized

Reference basis: The most competitive of the most fungible carbon credits issued by blue carbon projects

BECCS price assessments

Platts proposes to launch two daily price assessments for carbon credits generated from bioenergy carbon capture and storage, or BECCS, projects. The assessments -- one for current year delivery and one for Yr01 delivery -- would reflect the most competitive of the most fungible carbon credits issued by BECCS projects that remove, capture or store GHG emissions.

Platts defines BECCS as projects that capture and store carbon produced during the conversion of biomass to energy, including but not limited to ethanol bio-refinery, municipal solid waste, anaerobic digestion and fermentation projects.

BECCS credits are currently included in the Platts Tech Carbon Capture assessment. Platts proposes to launch an outright prices assessment for BECCS credits with the following additional specifications:

Volume range: 5,000 to 50,000/mtCO2e

Vintage range: Each of the last five years, including the current year. For example, on March 11, 2024, the assessment would consider vintages 2019-2023, rolling to 2020-2024 from July 1, 2024. For the Yr01 price, the assessment would consider vintages of the current year and Yr01. For example, on March 11, 2024, the assessment would consider vintages 2023-2024, rolling to 2024-2025 from July 1, 2024

Delivery: Current year delivery and delivery one year forward

Co-benefits: Standard SDG benefits for this project type, credits with additional SDG benefits may be normalized

Reference basis: The most competitive of the most fungible carbon credits issued by BECCS projects

BECCS market activity is considered as part of the Tech Carbon Capture assessments and blue carbon market activity is considered as part of the Natural Carbon Capture assessments.

Under these proposals, blue carbon and BECCS activity would be considered within their respective standalone assessments only.

Details of the Platts carbon methodology and assessments are available here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/method_carbon_credits.pdf

Please send any further feedback to platts_carbon@spglobal.com and pricegroup@spglobal.com by Feb. 5, 2024.

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.