S&P Global Commodity Insights - Carbon Markets Daily

Carbon Markets Daily

March 14, 2023

PLATTS CARBON: VCS certified Renewable Energy ID 1200 (Wind) credits offered 50k bid at $2.20/mtCO2e; vintage: 2017; delivery: 2023; co-benefits: unspecified; region: China; source: broker; PLATTS CARBON: VCS certified Renewable Energy ID 1351 (Biomass) credits offered 82k bid at $2.00/mtCO2e; vintage: 2019-2021; delivery: 2023; co-benefits: unspecified; region: India; source: broker; PLATTS CARBON: GS certified Renewable Energy ID 7468 (Wind) credits heard 43k bid at $2.95/mtCO2e; vintage: 2021; delivery: 2023; co-benefits: unspecified; region: India; source: broker; PLATTS CARBON: GS certified Renewable Energy ID 7468 (Wind) credits heard 43k offered at $3.20/mtCO2e; vintage: 2021; delivery: 2023; co-benefits: unspecified; region: India; source: broker; PLATTS CARBON: ACR certified Afforestation/Reforestation ID 114 (Green Trees) credits heard 70k offered at $9.50/mtCO2e; vintage: 2013; delivery: 2023; co-benefits: unspecified; region: USA; source: broker; PLATTS CARBON: VCS-CCB Gold certified REDD+ ID 1748 (Southern Cardamom) heard vintage 2018 at a $4.50/mtCO2e premium towards 2016 vintage; source: broker; PLATTS CARBON: VCS-CCB certified REDD+ credits heard indicative value for large volumes at $4.00/mtCO2e; vintage: 2016; delivery: 2023; co-benefits: unspecified; region: unspecified; source: trader; PLATTS CARBON: VCS-CCB certified REDD+ credits heard indicative value for large volumes at $9.00/mtCO2e; vintage: 2018; delivery: 2023; co-benefits: unspecified; region: unspecified; source: trader;

PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s GEO spot contract heard 2,000 t bid at $2.30/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s GEO spot contract heard 2,000 t offered at $2.55/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s N-GEO spot contract heard 1,000 t bid at $2.20/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s N-GEO spot contract heard 1,000 t offered at $2.45/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s C-GEO-TR spot contract heard 1,000 t bid at $0.50/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s C-GEO-TR spot contract heard 1,000 t offered at $1.50/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s C-GEO spot contract heard 2,000 t bid at $0.75/t; PLATTS CARBON: [heard 1200 GMT]: Xpansiv CBL’s C-GEO spot contract heard 2,000 t offered at $1.00/t;

Platts Carbon Rationale This rationale is relevant for assessments in the CBN market data category: The Platts CEC price was assessed stable on the day March 14. CBL’s GEO spot contract was heard bid and offered in the $2.30-$2.55/mtCO2e range, with 2,000 mt on each side. ACX’s CET spot contract was heard bid and offered in the $2.40- $2.55/tCO2e range with 5,000 mt and 3,000 mt on each side, respectively. The Platts CNC price was assessed stable on the day. The Xpansiv CBL’s N-GEO spot contract was heard bid and offered in the $2.20-$2.45/mt range with 2,000 mt and 1,000 mt on each side, respectively. ACX’s GN7 contract was heard offered at $5.75/mtCO2e for 2,000 mt. Platts Renewable Energy Current Year (CY) was assessed stable on the day. Platts heard about 25,000 mt GS-certified ID 7468 wind credits traded at $2.95/mtCO2e with 2020 vintage from India. It had heard earlier that GS-certified credits were at a $1/mtCO2e premium over VCS credits. About 43,000 mt Wind ID 7468 credits were offered at $3.20/mtCO2e with a 2021 vintage. The prices were quite low for GS-certified credits. An India-based source said that the owner was selling these credits at $3.90/mtCO2e and maybe some intermediary was selling them at lower levels to cut some losses. Platts also heard about 50,000 mt VCS-certified wind credits bid at $2.10/mtCO2e and offered at $2.60/mtCO2e with a 2018+ vintage from India. About 70,000 mt of solar credits ID 1792 were heard bid and offered in the range of $2.35/mtCO2e-$2.75/mtCO2e with a 2019 vintage. Sources said that prices of VCS-certified credits were falling further while GS was holding stable. Platts Methane Collection CY was assessed stable on the day, after Platts heard some 400,000 mt VCS-certified credits from Turkey were offered at $3.90/mtCO2e with 2019-2020 vintage.

$1.20/mtCO2e premium between 2021 and 2022 vintage credits. Platts had earlier heard that African credits were at a $1.75/mtCO2e premium over Indian ones. Some forward delivery prices were also heard March 14. Cookstoves credits with ID 4539 and ID 2094 were heard offered at $7.90/mtCO2e and $7.75/mtCO2e, respectively, with 300,000 mt and 90,000 mt volumes. ID 4539 has a 2020-2022 vintage, while ID 2094 has 2021 vintage. Offer prices for the forward delivery were lower than that for the spot markets, indicating they were still being offered at a discount. A Singapore-based source said most forward contracts were priced lower because of the risk. Delay in issuances, which has been a usual case in recent times, also adds to the discount, the source said. Weakness in renewables Bearishness continued in the renewable energy segment, with an India-based trader seeing zero demand. Some 43,000 mt Wind ID 7468 credits were offered at $3.20/mtCO2e with a 2021 vintage. The prices were quite low for GS certified credits. The trader said the owner was selling these credits at $3.90/mtCO2e and this offer might be from some intermediary selling the credits at lower levels to cut losses. Platts had heard earlier that GS certified credits were at a $1/mtCO2e premium over VCS credits. Platts also heard some 50,000 mt VCS certified wind credits bid at $2.10/mtCO2e and offered at $2.60/mtCO2e with a 2018+ vintage from India. Some 70,000 mt solar credits ID 1792 credits were heard bid and offered in the range of $2.35/mtCO2e- $2.75/mtCO2e with a 2019 vintage. The source said prices of VCS certified credits were falling further, while GS was holding stable. —Kanchan Yadav, Silvia Favasuli

4

© 2023 by S&P Global Inc. All rights reserved.