Introducing Customized Indices for Voluntary Carbon Offsets | by Anton Root | AlliedCrowds | Could, 2022


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 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 knowledge, to forging partnerships with Emsurge and AirCarbon Change, we’ve helped to deliver 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 bear in mind not solely the worth of the underlying tasks’ credit, but additionally the volumes of credit retired.

For example, take into account 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 wished to reply the query, ‘How a lot does a carbon credit score value?’ 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 mirror the vast unfold of what a ton of CO2e is price — from this $3 CDM venture to this €500 biochar venture — we wished to supply a single value that displays the typical value of carbon available in the market, based on 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, nonetheless, is that we’re in a position to create customized indices primarily based on market wants. The indices will be organized by:

  • SDG and CCB knowledge
  • geography
  • methodology
  • sector
  • venture proponent
  • venture verifier
  • registry
  • venture dimension
  • and way more

In the event you’re curious to be taught extra, get in contact! Within the meantime, you may get updates of our indices by way of Carbon Pulse’s weekly VCM Report (subscription required), or on our website (with backward-looking knowledge).

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