Platts proposes to launch Native Species, Renewable Energy differentials

Platts, part of S&P Global Commodity Insights, proposes to launch additional daily price differentials for Native Species and Renewable Energy on March 11, 2024, to expand its current suite of voluntary carbon credit prices.

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

Native Species Differential

Platts proposes to launch a daily price differential for carbon credits generated from afforestation/reforestation projects involving native species. The differential will be assessed as a discount or premium to the Platts Natural Carbon Capture Current Year price assessment, published in $/mtCO2e.

Platts understands that there is an emerging spread between afforestation/reforestation projects involving native species and afforestation/reforestation projects that do not involve native species. The Platts Natural Carbon Capture assessment reflects the most competitive of the most fungible carbon credits issued by nature-based projects that remove greenhouse gas emissions.

Further specifications of this proposed differential match those for the Platts Natural Carbon Capture Current Year assessment and are listed below.

Volume range: 5,000/mtCO2e 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 the 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: Afforestation and Reforestation Credits with suitable performance and broad market acceptance.

Platts seeks additional feedback on the minimum percentage of native species in a project that should be considered as the reference for native species projects.

Renewable Energy Differentials

Platts proposes to launch two geography-based differentials for carbon credits generated from renewable energy projects. The differentials would be assessed as a discount or premium to the Platts Renewable Energy price assessment, published in $/mtCO2e.

The Platts Renewable Energy price assessment reflects the most competitive of the most fungible renewable energy carbon credits that avoid GHG emissions. The reference basis for Platts Renewable Energy assessment is Gold Standard-certified wind and solar renewable energy credit from India and Turkey. Platts will publish geography differentials outside of these reference basis locations for the following geographies:

• Latin America
• China

Further specifications of these proposed differentials match those for the Platts Renewable Energy Current Year assessment and are listed below.

Volume range: 50,000/mtCO2e to 150,000/mtCO2e

Vintage range: Each of the last three years, including the current year. For example, on March 11, 2024, the Current Year assessment would consider vintages 2021-2023, rolling to 2022-2024 from July 1, 2024. The Yr01 assessment would consider vintages of each of the past two years, including the current year and Yr01. For example, on March 11, 2024, the Yr01 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: Gold Standard-certified wind and solar renewable energy credits from India and Turkey.

Details of the Platts carbon methodology and assessments are available at 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.