Monday, March 27, 2023
HomeCrowdfundingIntroducing Customized Indices for Voluntary Carbon Offsets | by Anton Root |...

Introducing Customized Indices for Voluntary Carbon Offsets | by Anton Root | AlliedCrowds


Selling worth transparency for voluntary carbon credit.

After we began trying into the voluntary carbon market almost two years in the past, two key points dominated the market: what’s the high quality of the credit, and what’s the worth? Having no expertise in environmental sciences, we rapidly determined to let the specialists 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 great 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 Alternate, we’ve helped to carry transparency in pricing for voluntary carbon offsets.

Our newest initiative is a pure development to our work thus far — we’re excited to announce the AlliedOffsets Carbon Indices. Our indices are distinctive in that they keep in mind not solely the worth of the underlying tasks’ credit, but in addition the volumes of credit retired.

For instance, take into account our flagship AlliedOffsets500 (AO500) index. This displays the worth of the highest 500 tasks which have been retired since January 1st, 2020, weighted by the variety of credit every one has retired. In creating this index, we wished to reply the query, ‘How a lot does a carbon credit score price?’ Whereas there may be a variety of applied sciences and costs, AO500 narrows down the query to what’s truly being retired. In different phrases, as a substitute of capturing costs that replicate the huge unfold of what a ton of CO2e is value — from this $3 CDM venture to this €500 biochar venture — we wished to supply a single worth that displays the common worth of carbon out there, in accordance with what’s truly being retired.

We’ve launched with 9 customized indices, all of which seize totally different components of the market. The advantage of our method, nevertheless, is that we’re in a position to create customized indices based mostly on market wants. The indices could be organized by:

  • SDG and CCB information
  • geography
  • methodology
  • sector
  • venture proponent
  • venture verifier
  • registry
  • venture dimension
  • and far more

Should you’re curious to study extra, get in contact! Within the meantime, you will get updates of our indices through Carbon Pulse’s weekly VCM Report (subscription required), or on our web site (with backward-looking information).

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