OPIS by IHS Markit Launches First Voluntary Carbon Credit Price Assessments Providing Transparency Needed to Advance Paris Agreement Climate Goals
The IIF Taskforce on Scaling Voluntary Carbon Markets recommends price reporting agencies provide OTC markets with increased transparency
OPIS, an IHS Markit (NYSE: INFO) company and the leading benchmark provider for emissions and carbon markets data, will launch today the world’s first comprehensive daily pricing suite for global voluntary carbon offset credits to advance the global initiative to reduce greenhouse gas emissions. The OPIS Global Carbon Offsets Report will bring greater transparency to the voluntary REDD+ credits and CORSIA-eligible offsets markets, providing pricing solutions to stakeholders engaged in net-zero and emissions reduction strategies.
The new information service will include daily price assessments for voluntary carbon credits produced by nature-based projects for Reducing Emissions from Deforestation and Forest Degradation (OPIS Voluntary REDD+ Credits), as well as CORSIA Eligible Offsets (OPIS CEO) that reflect methodologies specified by the International Civil Aviation Organization (ICAO) for assets that comply with the Carbon Offsetting and Reduction Scheme for International Aviation program. The report will also include daily assessments for California Carbon Offsets (OPIS CCO) and CCO with a Direct Environmental Benefit in the State (OPIS DEBS CCO).
“The increasing number of net-zero commitments by countries and corporations underpins the demand for transparent benchmark pricing for voluntary carbon credits,” said Fred Rozell, president, OPIS by IHS Markit. “To achieve emissions-reduction goals set forth in the Paris Agreement, the market is primed to grow exponentially by 2030. The OPIS Global Carbon Offsets Report will send a reliable price signal to the industry, enabling developers of nature-based projects to secure financing, which is paramount for the markets to scale. As we embark on 2021 and look forward to the COP26, OPIS is excited to lead the way in helping to unlock the potential of the carbon offsets markets.”
The Institute of International Finance (IIF) Taskforce on Scaling Voluntary Carbon Markets in its November 2020 Consultation Document estimated that voluntary carbon markets need to increase by at least 15-fold to meet the growing demand from companies with carbon neutrality goals. The Taskforce said that the voluntary carbon over-the-counter (OTC) market would benefit from price transparency provided by a price reporting agency. IHS Markit is a member of the IIF Taskforce on Scaling Voluntary Carbon Markets.
The OPIS Global Carbon Offsets Report includes 27 voluntary carbon offset credits physical assessments as well as 10 compliance offsets physical assessments. OPIS Voluntary REDD+ Credit prices reflect credits certified by Verra (VCS) that include validation under the Climate, Community & Biodiversity Standards (CCB). OPIS CEO prices reflect credits eligible for compliance under the ICAO Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) program. OPIS CCO and DEBS CCO prices reflect offsets issued by California’s Air Resources Board for compliance with the state’s Cap-and-Trade program.
“Our team of dedicated carbon market experts committed 2019 and 2020 to extensive consultation with dozens of voluntary carbon industry stakeholders,” said Linda Herbert, vice president, OPIS by IHS Markit. “This critical engagement resulted in the design of a robust methodology that accurately reflects fair-market value for forestry credits and CORSIA-eligible offsets. OPIS is confident that its full suite of voluntary carbon indices addresses the challenges that stakeholders currently experience from a lack of transparent pricing. With this launch, OPIS solidifies its commitment to addressing the pricing needs of rapidly developing global carbon markets.”
The OPIS voluntary and compliance carbon markets assessments reflect confirmed bids, offers and trades reported by approved traders, brokers and electronic platforms. OPIS Voluntary REDD+ Credits, CEO, CCO and DEBS CCO are assessed in U.S. dollars per metric ton ($/mt). Full details about the OPIS voluntary and compliance carbon methodologies can be found in OPIS Carbon Market Pricing.
OPIS began providing daily price transparency for North America’s compliance carbon markets in 2014 and remains the relied-upon price reporting agency, benchmarked by the California transportation fuels industry, to provide accurate assessments for the state’s Cap-and-Trade and Low Carbon Fuel Standard programs. OPIS assessments for California Carbon Allowances (OPIS CCA) and Regional Greenhouse Gas Initiative Allowances (OPIS RGGI) underly the IHS Markit Global Carbon Index (GLCARB), which serves as a benchmark to the KFA Global Carbon ETF (KRBN) that launched to the New York Stock Exchange this year.
OPIS Global Carbon Offsets Report publishes daily to meet the demand for a price reporting agency to provide a benchmark for global carbon offset credits. It is the only carbon price suite that enables global voluntary carbon project developers, traders, marketers and investors to accurately identify a fair value for their assets.
For further information about the OPIS Global Carbon Offsets Report, contact Lisa Street, associate director, OPIS at Lisa.Street@ihsmarkit.com.
About OPIS (www.opisnet.com)
Oil Price Information Service (OPIS) by IHS Markit (NYSE: INFO) provides accurate pricing, real-time news and expert analysis across the global fuel supply chain. Leveraging data from its spot, rack and retail market sources, OPIS enables its customers to buy and sell oil, gas and petrochemical products with confidence across the globe.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (NYSE: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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