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HomeCrowdfundingIntroducing Customized Indices for Voluntary Carbon Offsets | by Anton Root |...

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


Selling value transparency for voluntary carbon credit.

After we began wanting 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 shortly 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 knowledge, to forging partnerships with Emsurge and AirCarbon Alternate, we’ve helped to deliver transparency in pricing for voluntary carbon offsets.

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

For instance, think about 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 each has retired. In creating this index, we wished to reply the query, ‘How a lot does a carbon credit score value?’ Whereas there may be a variety of applied sciences and costs, AO500 narrows down the query to what’s really being retired. In different phrases, as a substitute of capturing costs that replicate the huge 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 common value of carbon available in the market, in line with what’s really being retired.

We’ve launched with 9 customized indices, all of which seize completely different elements of the market. The good thing about our strategy, nonetheless, is that we’re in a position to create customized indices based mostly on market wants. The indices will be organized by:

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

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

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