Selling value transparency for voluntary carbon credit.
Once we began trying into the voluntary carbon market practically two years in the past, two key points dominated the market: what’s the high quality of the credit, and what’s the value? Having no expertise in environmental sciences, we rapidly determined to let the consultants pursue the previous query (keep tuned for bulletins on that entrance). That gave us a transparent mandate: understanding the worth of carbon credit.
We’ve come a good distance towards offering this transparency: from valuing the worth of 19,000 tasks globally and pulling in retail pricing information, to forging partnerships with Emsurge and AirCarbon Change, we’ve helped to convey transparency in pricing for voluntary carbon offsets.
Our newest initiative is a pure development to our work to this point — we’re excited to announce the AlliedOffsets Carbon Indices. Our indices are distinctive in that they take note of not solely the worth of the underlying tasks’ credit, but additionally the volumes of credit retired.
For instance, think about our flagship AlliedOffsets500 (AO500) index. This displays the worth of the highest 500 tasks which were retired since January 1st, 2020, weighted by the variety of credit each has retired. In creating this index, we needed to reply the query, ‘How a lot does a carbon credit score price?’ Whereas there’s a variety of applied sciences and costs, AO500 narrows down the query to what’s truly being retired. In different phrases, as an alternative of capturing costs that replicate the large unfold of what a ton of CO2e is price — from this $3 CDM venture to this €500 biochar venture — we needed to offer a single value that displays the typical value of carbon available in the market, in keeping with what’s truly being retired.
We’ve launched with 9 customized indices, all of which seize completely different elements of the market. The good thing about our method, nevertheless, is that we’re capable of create customized indices primarily based on market wants. The indices may be organized by:
- SDG and CCB information
- geography
- methodology
- sector
- venture proponent
- venture verifier
- registry
- venture dimension
- and way more
In the event you’re curious to study extra, get in contact! Within the meantime, you may get updates of our indices through Carbon Pulse’s weekly VCM Report (subscription required), or on our web site (with backward-looking information).
